NorthVPN settles local VAT in the EU? Why?

Are all now NorthVPN Users recognizable by EU authorities?

NorthVPN settles local VAT in the EU? Why? 1NorthVPN changed the payment provider more than a month ago. The possibility to pay via PayPal was discontinued. These measures are all a coordinated consequence of the relocation of accounting to Cyprus. (Link: NorthVPN Puts PayPal Payments) So far, the contracts have been through cloudVPN Inc based in New York. Little has changed for customers and users, and NordVPN is technically still operated by the company in Panama.

Many users are somewhat indignant because they think that NorthVPN but a provider based in Panama is?

That is also correct, because the technical implementation of the entire service is carried out by Tefincon in Panama. However, as a company in Panama, there are only limited possibilities as far as the forms of offsetting are concerned. For example, Panama companies can not open PayPal accounts or accept instant transfers. The country and the banks are simply not part of the SWIFT / IBAN network.

NorthVPN was through cloudVPN Inc. in the United States.

Therefore had NordVPN Soon, about the company in the US allows these payments. Now has northVPN but again and oriented to the future and founded a subsidiary in Cyprus. This is accompanied by a change in the payment service provider.

VAT regulations within the EU

Within the EU, however, certain regulations also apply to the purchase of goods and services within the EU area. This means it mainly affects customers who also buy these services in the EU. The VAT is collected by the company and fed to the country specified by the user. Since these are not residential addresses for sending a postal item, the details of the customer can not be verified.

As soon as a user states that he wants to obtain the service outside the EU, he does not need to pay the resulting VAT. northVPN then does not do this either.

Does the transfer of the place of settlement affect the protection of one's own identity?

Since then northVPN already implemented accounting via the US, there has been no real change in the transfer to Cyprus. The service will continue to be provided technically via Panama and there is no legal requirement to collect or monitor user data.

Can you now specify a location outside the EU in order to save VAT?

Da NordVPN neither queries the data of users such as name / date of birth or address, the service can not raise the real place of residence of users. The current regulation stipulates that the users themselves and voluntarily specify where the VAT is to be paid. To give no correct information here certainly has nothing to do with a deliberate deception by the user. Therefore, many users also specify a location outside the EU and save yourself the VAT.

19% VAT if you state Germany

VAT for Germany (NorthVPN)
VAT for Germany (NorthVPN)

No VAT if you enter a country outside the EU.

VAT for Russia (NorthVPN)
VAT for Russia (NorthVPN)

My conclusion on the VAT at NordVPN:

The regulations of the EU are somewhat riddled with products that you can simply use everywhere. This allows the> users to decide for themselves where the location is at which they receive the service from NordVPN to deliver or use. This information will result in VAT being paid to the State concerned. But if the user specifies outside the EU, then no VAT is due. Da NordVPN even if no user data is requested, the details of the customers can not be verified. Which is why it seems safe to the customers that they just choose their own locations in order to save themselves the taxes. I can not blame you.

While it is clear that tax revenues are important for the tasks of their own state and should not be deliberately bypassed, as for example Apple, Starbucks and thousands of other companies do daily. In this case, the reader will have to throw his own conscience to the test.


Created on:03/06/2019

Leave a Comment