Nick from BHost emailed me a new coupon code as their previous exclusive offer has expired. Same offer — use LOWENDBOX2010A to get 20% off recurring discount. Unfortunately V.A.T. is payable to those even outside U.K. as service is supplied there (okay, tax sux). So it comes down to £4.46/month which is roughly USD$7 for their “Bronze” package.
- 512MB guaranteed/1024MB burstable memory
- 20GB storage
- 1000GB/month data transfer on 100Mbps
- OpenVZ/SolusVM
Servers are with RapidSwitch in UK. Company established since 2002 and has pretty good feedbacks from their previous offer.
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The Founder at LowEndBox
The original owner of LowEndBox known as LowEndAdmin or LEA for short founded LowEndBox in 2008 and created the concept of hosting applications on low resource Low End Boxes. After creating the roots of the community that we know today, LEA stepped aside and allowed others to carry the torch forward.
Latest posts by LEA (see all)
- 5 Reasons Why You Want a Low End Box - May 26, 2021
- Dead Pool January 2012 - February 2, 2012
- exit(0); - January 19, 2012
It is 0.54 pound more than offer from a month ago.
yeah vat is suck. 0.54 pound tha willbe 7 pound a year
The cost from the previous offer did not include VAT. Not to mention VAT has increased to 20% in UK now. It’s actually the same discount — 20%.
They should claim that they are school clothes, then you don’t pay VAT.
And if someone finds out? :3
Or food. I’ll help with the cover up. There’s nothing more delicious than a VPS.
Can’t recommend this company enough. Great service, fast response and quick setup. I opted for the slightly “beefier” bhost offering for £6.90 a month. Couldn’t be happier with a lowendbox thou!
Regrettably we’ve had a slight tax rise effective 4th January – a 2.5% increase. Hopefully we’re still great value!
They should NOT be charging VAT unless it’s an EU Resident purchasing. They are not allowed to be charging VAT to non-EU residents…. VAT is the Tax the company pays when EU residents purchase (20% for UK residents and 19% for other EU residents) and is not imposed on them when they are purchasing from outside the EU.
That is of course if bHost are VAT registered.
To add – I do not doubt they they are but it’s not as if they pay VAT… if they are VAT registered then they will be able to claim back (not pay) VAT on any of their purchases. So it seems wrong to charge the non-EU customers.
My $0.02.
We’re just getting clarification from our tax advisers on these circumstances.
From the link “United Kingdom Value Added Tax (VAT)” at bhost.net’s site:
http://www.hmrc.gov.uk/vat/managing/international/exports/services.htm
Whenever you supply services, then for VAT purposes, it is essential to know the ‘place of supply’. This determines which country’s VAT rules should be used and how you have to account for the VAT on the sale.
If you are supplying services abroad, then the place of supply is not always obvious.
This guide explains the rules you must use to work out the place of supply of services.
…
The general rule for working out the place of supply of services (apart from those covered by special rules)
You supply services to a: business customer
The place of supply is: the place where the customer belongs
You supply services to a: non business customer
The place of supply is: the place where the supplier belongs
—-
The fact that Francisco knows about UK TAX is impressive, If your the Francisco from BuyVM
@Daniel He just looked a round a bit and copied the rules from a UK government website.
Sorry if I was not clear. The link to the UK government website about VAT I found under VPS->Sales Info tab in the bhost.net’s site. The text posted is just an excerpt from that government site.
Yeah, in my experience we’ve never had to charge vat to NON-EU customers. very odd.
People can use proxies/vpns to skip VAT then, its better to be safe then sorry.
Not 19% VAT for other residents, it depends on the EU country for example Luxemburgians are charged 15%, people of Denmark, Sweden and Hungary are charged 25% VAT.
I just signed up on their old offer, using the 20% discount on the Gold package. Very impressed with the roundtrip pings (better than Burstnet EU by a whisker), and setup was very quick.
I asked them to enable TUN/TAP and it was done within 5 minutes.
As an aside, can anyone let me know WHY TUN/TAP is good to have enabled?!
LOL, if I’m correct, you asked for tun tap without knowing what is? xD
Well, is a kernel module used to enable virtual network interfaces to create private networks, openVPN is the most common. I use hamachi, is easier.
BTW I never had to pay VAT before.
How does this work out at £4.46?
The prices quoted are £4.90 ex VAT, and £5.88 inc VAT.
Less 20%, I make that £3.92 ex VAT, and £4.70 inc VAT.
Yeah I couldn’t figure out how £4.46 figure came about as well, except it is what’s shown on the invoice :) On the order summary it says:
Package: £4.90
VAT: £0.74
Discount: £1.18
Total: £4.46
Ah, ok then.
So it looks like on your invoice they calculated the Discount as if 20% VAT was applied, but actually charged the VAT at 15%.
UK VAT rate is 20% (the Co. is UK registered, I checked), but in any case it doesn’t look right either way to use two different rates… Maybe if this post saves them an embarrassing moment with HRMC they’ll offer me a free box? :-P
I signed up yesterday and my first invoice came to £4.46 including VAT.
Sounds like a mistake…
When will this coupon expire?
Thanks.
It seems Bhost doesn’t offer money back guarantee. Too bad.
Just to update you all:
1. The coupon LOWENDBOX2010A will continue to work until end of February.
2. We’re working with our tax advisers to gain final clarification with regards to the VAT and non-EU customers. Further updates shortly. If necessary, we will refund any tax we should not have charged. The guidance from the UK tax authority, HMRC, is somewhat complex and we have received conflicting advice on this specific matter.
3. I have worked out the problem with the discount code. The code was actually giving 24% off, when it should have been 20%. So for the Bronze package for example:
Base price: £4.90
With 24% discount: 3.72
20% VAT on £3.72: £0.74
Total: £4.46
We’ve decided to leave the discount rate at 24% until the coupon expires at the end of February.
4. Apologies to our customers for any confusion. Just email us at accounts@BHost.net with any specific queries and we’ll be happy to help.
Thanks for the follow up. :)
Got the bronze package today. Instant setup. Asked for tun to be enabled, with a quick response. Great customer service. Network is very nice :)
Went for the bronze package… quick setup, good correspondence, great service!
Hi,
Just a quick question. Does the discounted price keep rolling or will it rise, and also, if I pay annually, will the annual price roll or will it rise at the end of the contract?
Thanks
The discount is rolling i.e. applies indefinitely. This is true whether you pay month by month or annually.
Have a look here:
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&id=HMCE_PROD1_029955&propertyType=document#P596_73899
and look at Section 14.3 “What is the place of supply of my services if my customer belongs outside the EC?”. This section will refer you to Section 15, which includes “Web Hosting” services (which is pretty much the same as VPS hosting services as far as VAT is concerned).
Bottom line, I don’t think VAT is chargeable to customers outside of the EU, with regards to VPS services.
All non-EU customers are eligible for a rebate on any VAT unnecessarily paid – they just need to log a support ticket stating they are a non-EU customer and we’ll arrange everything.