Sedo’s Commission Increases To About 18% For Europeans Without A VAT Number

On April 9, 2015, Sedo will be changing the minimum fee and minimum bid amounts for the first time.

For customers liable for payment of VAT, there will also be changes in how the sales commission is handled for tax purposes. The new prices take effect on April 9, 2015. This means that EU residents without a VAT number will have to pay additional VAT tax on the 15% commission to Sedo. The average VAT percentage in the European Union is at about 20% so the Sedo commission will be 18%. Those who have a VAT number in Europe and all others outside the EU will not be affected by the change. Sellers will pay the VAT percentage of their respective country.

For example VAT tax is 25% in Norway and Denmark and 27% in Hungary. This means that Sedo commission is now 18,75% and 19,05% respectively.

Since January 1st 2015 there have been some changes that affected the way VAT tax is applied on “electronic services” (such as a domain name) purchased by European residents. People living within the European Union must pay for these electronic services (i.e. “nonmaterial goods”) no longer with the TVA of the country where the merchant is located (practically speaking, from where the services were purchased), but rather, the VAT of the country of residence (country where the service was consumed). The territorial rules pertaining to purchases made by European organization which have an intra community VAT number (mainly companies) remain unchanged.

The minimum fee is now $60 for any sale.

Sedo suggests that you “Please remember to adjust the prices for the domains you have available for sale with adequate lead time. This will help you ensure that the amount paid for each domain you sell is in line with your expectations.”

The new prices are already accessible at www.sedo.com/preview-pricelist.