NordVPN settles local VAT in the EU? Why?

Are all now NordVPN Users recognizable by EU authorities?

NordVPN settles local VAT in the EU? Why? 1 NordVPN 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: NordVPN 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 a little indignant because they think that NordVPN 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.

NordVPN was through cloudVPN Inc. in the United States.

Therefore had NordVPN soon made these payments possible through the company in the USA. Well has NordVPN 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. This means it mainly affects customers who also buy these services in the EU. The company levies the VAT and transfers it to the country specified by the user. Since these are not residential addresses for sending a mail item, the information provided by the customer cannot be verified.

As soon as a user states that he would like to receive the service outside the EU, he does not need to pay the applicable VAT. NordVPN then does not do this either.

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

Since so far NordVPN 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 (NordVPN)
VAT for Germany (NordVPN)

No VAT if you enter a country outside the EU.

VAT for Russia (NordVPN)
VAT for Russia (NordVPN)


My conclusion on the VAT NordVPN:

The regulations of the EU are a bit holey for products that can be used anywhere. This means that the> users can decide for themselves where the location is where the service is from NordVPN delivered or want to use. This information then results in the VAT being paid to the relevant state. But if the user states outside the EU, then no VAT is due at all. There 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

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