Esignal to Charge VAT on Data-Feeds How Can We Avoid It ?

[Trader333]

Just got an email from esignal saying they are going to charge VAT backdated to July 1st on all subscritions. They also said that it doesnt apply to other EU countries just us. Anyway does anyone have any thoughts on how this can be avoided as I pay in USD.

The other option is to leave esignal and go for Tradestation who dont charge this I suppose

Any thoughts ?


Paul

 

[boy]

I suppose if enough customers voiced their concerns regarding this issue then perhaps esignal might issue the monthly fee invoice VAT inclusive.

The question is though, why are esignal deciding to charge VAT and the other vendors not!

 

[FatCanary]

I would have thought that if e-Signal have to charge VAT on electronic services then other, non UK, companies would have to as well. Or is because, as they say, e-Signal is already registered for VAT in the UK?

FC

 

[iq200]

Isnt there some new EU law now about charging VAT for online transactions ? Has this IB case anything to do with that?

Imran

 

[JonnyT]

Vat is now payable on all data feeds to customers resident in the European Union taking services from outside the EU.

This was due to recent EU legislation.

MyTrack advised this last month, I guess some of the others are taking there time as they have to update their Corporate systems etc so short term may be absorbing costs.

The only way to avoid this tax is to leave the European Union.

JonnyT

 

[Skimbleshanks]

I doubt that the decision is one of eSignal's making - after all, it will make it more expensive for their users and that is probably the last thing they want.

I would suggest that HM Customs & Excise (bless 'em) have decided to intervene with the assurance that they do know best.

 

[technologi]

Hi trader

I thought Trade Station do not take any UK clients!

I would prefer TS to eSignal any time, what about Metastock any view on that?

I think the Vat man rather than eSignal who wants to collect VAT.


technologi

 

[ford]

How exactly can the EU enforce this, US businesses are out of 'their' control.

Gets on my nerves though, it's added another $10 to my MyTrack costs.. ok, only $10 or so but still.. it's another damn tax!

I like JonnyT's idea.. leave the EU..

 

[oatman]

Futures trading is exempt from VAT. If you set up your business this way you can claim back input tax.
I do. :cheesy:


Cheers

 

[iq200]

technologi, Tradestation do take UK clients. I had a subscription
feed from the end of last year until early this year. Now I have a
brokerage account from April.

Imran

 

[iq200]

oatman,

How is that? Is that US futures or UK futures?
Where can I get the details?

Regards,

Imran

 

[Trader333]

technologi

I think that Tradestation are now accepting UK customers and this is a recent change.

Oatman,

It is the data you are being charged for and not the trading.

Looks like I will just have to acquire a US address so any advice on this is also welcome.

Paul

 

[Trader333]

JohnnyT,

Here is the gist of the email:

Until now, as a US-based supplier, eSignal was not required to add taxes for clients outside the US, but under these new rules, we must charge VAT. Because eSignal is already VAT-registered in the United Kingdom (UK), we believe that we will be required to charge the UK VAT rate of 17.5% on all fees. Business clients of eSignal will also be charged the VAT, if they are in the UK; the VAT charge does not apply to businesses in other EU countries . We are waiting for UK authorities to confirm our belief. In the event that they do not agree with us, we may be required to charge VAT rates applicable in each EU country. Once we get final confirmation of the VAT rates applicable in each country, we will send another notice.

Note that they will not be charging VAT in other EU countries yet but this may change of course and I think it is because they are not registered there.

Cheers


Paul

 

[oatman]

Here's some info
http://www.hmce.gov.uk/forms/notices/701-9.htm
Imran see your pm.

Cheers

 

[Trader333]

The next thing we will be told is that we have to pay VAT on commission for trades being made. So I have already emailed IB and asked if they are registered for VAT in the UK lets hope not.


Paul

 

[Trader333]

technologi,

I am only speculating but it wouldnt surprise me. It would cost me an extra $1.75 per round trip on a 1000 lot share trade which I know isnt much but is annoying nontheless.

Cheers


Paul

 

[JonnyT]

Remember our Goverment have not imposed this Tax, so it's crap about funding the War.

The European Union in it's usual wisdom imposed this Tax. Give Labour 5 more years and they will be setting Interest rates and Income Tax rate's...

JonnyT

 

[JonnyT]

Hi Paul,

If you are making serious money then you probably need to trade through a limited company. If you go over the VAT threshold then you can effectively negate this VAT.

JonnyT

 

[Trader333]

Hi JonnyT,

I agree with you, I think Federal Europe is on its way and thanks for the comments on how to negate VAT.

Cheers


Paul

 

[oatman]

They weren't investors, they bought blind and I bet they gave most or more back. Bull markets make bad traders look good.