Feeds

Freeserve Anytime moves to Madeira

Cheap VAT for all

  • alert
  • submit to reddit

New hybrid storage solutions

Freeserve is moving tax domicile for its Anytime unmetered ISP service to Madeira, taking advantage of the island's cheapo VAT regime.

The company reckons it will make annual savings of around £4.5m, paying £13m into the EU, against £17.5m today. Of course, it's the exchequer of Portugal, Madeira's owner, what gets the money, not the UK. Madeira's VAT rate is 13 per cent, compared with 17.5 per cent in the UK.

Freeserve today confirmed a Sunday Telegraph report that it is prepping the rebrand for its UK service under the name of Wanadoo, its French parent. The exercise which will see 2.5m customers see their email addresses changed is expected to cost £30m. So the VAT saving will go a little way to funding this.

The change of tax domicile for Freeserve Anytime will 'marginally' reduce the advantage of AOL, the American giant which pays no VAT on its ISP services in the UK, according to Freeserve. This unlikely tax loophole ends in July, 2003, when the EU ECOFIN directive comes into force. Clearly, that's not soon enough for Freeserve, which claims that AOL will save another £40-£50m before its cosy personal finance regime is closed.

Freeserve is setting up a new company in Madeira which will be operational from September this year. The ISP says its users will not notice any difference. What not even in price?

This is a wizard wheeze: Reg Merchandise is upping sticks as soon as we can afford the airfare. ®

Related stories, link

Freeserve press release

EU closes AOL UK VAT loophole (but not yet)
Freeserve goes legal in AOL VAT spat
Freeserve punters to get Wanadoo email addys
Pluthero quits Freeserve for Energis

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.