Comments on: Making sense of 1&1′s decision to re-charge VAT http://www.brilliantthinking.net/2009/01/13/making-sense-of-11s-decision-to-re-charge-vat/ Edward Terry on the Internet, Cloud Computing, Innovation and the Environment Mon, 12 Jul 2010 16:16:04 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Edward http://www.brilliantthinking.net/2009/01/13/making-sense-of-11s-decision-to-re-charge-vat/comment-page-1/#comment-15318 Edward Fri, 30 Jan 2009 11:00:12 +0000 http://www.brilliantthinking.net/?p=304#comment-15318 Thanks Gerard, The VATman actually provided some good guidance about how and when to invoice and basically said that for things like this you didn't need to re-invoice, but they gave you the option to do so if you wanted. It's 1&1 that created the admin by deciding to take up the option. If they decide to take up the option again when we revert to 17.5% we'll all have the same paperwork all over again :( Edward Thanks Gerard,

The VATman actually provided some good guidance about how and when to invoice and basically said that for things like this you didn’t need to re-invoice, but they gave you the option to do so if you wanted. It’s 1&1 that created the admin by deciding to take up the option. If they decide to take up the option again when we revert to 17.5% we’ll all have the same paperwork all over again :(

Edward

]]> By: Gez http://www.brilliantthinking.net/2009/01/13/making-sense-of-11s-decision-to-re-charge-vat/comment-page-1/#comment-15317 Gez Thu, 29 Jan 2009 21:28:20 +0000 http://www.brilliantthinking.net/?p=304#comment-15317 I couldn't agree more - this is just administration for zero benefit. I found your blog while scratching my head about how to account to the VATman for an invoice dated mid January but with a tax point in June last year while trying to sort out my VAT return for end Dec! I don't think the treasury had any idea of the amount of admin they were creating with their pointless reduction in VAT...and that same block of admin will need repeating again come the return to 17.5%. Hey-ho. I couldn’t agree more – this is just administration for zero benefit.

I found your blog while scratching my head about how to account to the VATman for an invoice dated mid January but with a tax point in June last year while trying to sort out my VAT return for end Dec!

I don’t think the treasury had any idea of the amount of admin they were creating with their pointless reduction in VAT…and that same block of admin will need repeating again come the return to 17.5%. Hey-ho.

]]> By: Edward http://www.brilliantthinking.net/2009/01/13/making-sense-of-11s-decision-to-re-charge-vat/comment-page-1/#comment-15315 Edward Wed, 21 Jan 2009 19:44:29 +0000 http://www.brilliantthinking.net/?p=304#comment-15315 Returning to the original post - having thought about it some more I can't actually make sense of it. At all. Basically, 1&1 have decided to refund the overpaid VAT to its customers. 1&1 claim this VAT back from HMRC. 1&1's customers then receive the overpaid VAT and then have to repay it to HMRC. So the money just passes round the system for the sake of it, creating administration for everybody with zero benefit. If anybody can shed any light on why 1&1 (or any company) would do this, please feel free to comment here! Returning to the original post – having thought about it some more I can’t actually make sense of it. At all.

Basically, 1&1 have decided to refund the overpaid VAT to its customers. 1&1 claim this VAT back from HMRC. 1&1′s customers then receive the overpaid VAT and then have to repay it to HMRC. So the money just passes round the system for the sake of it, creating administration for everybody with zero benefit.

If anybody can shed any light on why 1&1 (or any company) would do this, please feel free to comment here!

]]> By: Edward http://www.brilliantthinking.net/2009/01/13/making-sense-of-11s-decision-to-re-charge-vat/comment-page-1/#comment-15314 Edward Wed, 21 Jan 2009 18:21:06 +0000 http://www.brilliantthinking.net/?p=304#comment-15314 There are a lot of blogs and reports both praising 1&1 as well as warning anybody to avoid them. 1&1 are a *huge* company and inevitably will make mistakes. I have had some minor administrative niggles with them which have taken longer to resolve than I would have liked and there are elementary bugs in some of their address forms (which amazes me, and which I have pointed out to them many months ago yet still remain). However, until now they have provided me with a simple and easy domain registration service which is all I need. I have been using them for a few years now as a domain registrar only. I handle all my company's hosting through RackSpace and am a firm believer in "you get what you pay for". I have never used 1&1 hosting services, but have used other virtual hosting companies with poor results. Hence the decision to partner with the best and go down the dedicated servers route. In the UK, domain registrations are handled by SCHLUND in Germany - who is the registrar in Pennsylvania? Essentially, 1&1 handle the fees and provide an account for you to manage domains, but they are registered with a third party and not 1&1 directly. It appears that 1&1 have sent NCO incorrect data - and are somehow unaware that the data is wrong! Not very promising and I hope this issue doesn't appear in the UK as I have cancelled and transferred a few domains away from my 1&1 account in the last couple of months (routine business). However, since registrations are actually with a third party and not 1&1 directly it is not difficult to imagine a situation where the registrar shows the domain cancelled, but 1&1's admin system hasn't updated properly. Given the elementary form bugs I mentioned earlier, it's not beyond the realms of possibility that the error is down to ineptitude rather than malice. I would recommend collating all communications from 1&1 and any third party registrars when trying to appeal any such case. As they say - caveat emptor - let the buyer beware. There are a lot of blogs and reports both praising 1&1 as well as warning anybody to avoid them. 1&1 are a *huge* company and inevitably will make mistakes. I have had some minor administrative niggles with them which have taken longer to resolve than I would have liked and there are elementary bugs in some of their address forms (which amazes me, and which I have pointed out to them many months ago yet still remain). However, until now they have provided me with a simple and easy domain registration service which is all I need.

I have been using them for a few years now as a domain registrar only. I handle all my company’s hosting through RackSpace and am a firm believer in “you get what you pay for”. I have never used 1&1 hosting services, but have used other virtual hosting companies with poor results. Hence the decision to partner with the best and go down the dedicated servers route. In the UK, domain registrations are handled by SCHLUND in Germany – who is the registrar in Pennsylvania? Essentially, 1&1 handle the fees and provide an account for you to manage domains, but they are registered with a third party and not 1&1 directly.

It appears that 1&1 have sent NCO incorrect data – and are somehow unaware that the data is wrong! Not very promising and I hope this issue doesn’t appear in the UK as I have cancelled and transferred a few domains away from my 1&1 account in the last couple of months (routine business). However, since registrations are actually with a third party and not 1&1 directly it is not difficult to imagine a situation where the registrar shows the domain cancelled, but 1&1′s admin system hasn’t updated properly. Given the elementary form bugs I mentioned earlier, it’s not beyond the realms of possibility that the error is down to ineptitude rather than malice. I would recommend collating all communications from 1&1 and any third party registrars when trying to appeal any such case.

As they say – caveat emptor – let the buyer beware.

]]> By: Warth Publishing Inc http://www.brilliantthinking.net/2009/01/13/making-sense-of-11s-decision-to-re-charge-vat/comment-page-1/#comment-15312 Warth Publishing Inc Thu, 15 Jan 2009 01:46:28 +0000 http://www.brilliantthinking.net/?p=304#comment-15312 Choosing a good web site provider and registrar is critical for a successful internet business. I have come to the conclusion that I made the dreadful error of choosing a company because it had a 5 page ad in a popular computer magazine. I believe I have put my trust in a straw man. In my opinion 1and1, with CEO Oliver Mauss, is a horrible company and many customers have voiced a host of complaints on various blogs. It should be a warning that when their phone is answered by a recording that tells you if you have gotten a notice from NCO, a collection agency, to press a certain number. If they are a reputable business, why do they have to send so many accounts to a collection agency? Patrick Frey (Patterico) of the Los Angeles District Attorneys Office alleges his domain was high jacked and put up for auction on SEDO. SEDO is an associate company of 1and1. Patterico: “I believe I’m facing massive incompetence, thievery, or very possibly a deliberate combination of the two. It feels like evil intent — but not for political reasons. It feels like cyber extortion — people going after the almighty dollar. Commenters have pointed out corporate ties between 1&1, which can’t seem to process my timely renewal, and Sedo/Domcollect, which stood to profit from 1&1’s failure. Usually, corporate incompetence does not earn the corporation money — but 1&1 and its related companies have found a way to make money off of their own slipshod procedures.” Patterico was able to regain his domain. Also Investigative journalist, Kelli Jack, has written 30 articles about this company and has a suit pending against them. Kelli alleges that 1and1 stole her domain name and sold it. Kelli states: "1and1 should be shut down." As of today Kelli is working with the Pennsylvania Attorney General. I have filed complaints with the Federal Bureau of Investigation, Federal Trade Commission, Eastern Pennsylvania Better Business Bureau, ICANN, and others. I recommend everyone else having a problem consider doing the same. The Washington DC, Pennsylvania Better Business Bureau has them listed as "Unsatisfactory" Read comments on the BBB why. Read some customer comments on Red Flag. Warth Publishing Inc Choosing a good web site provider and registrar is critical for a successful internet business.
I have come to the conclusion that I made the dreadful error of choosing a company because it had a 5 page ad in a popular computer magazine. I believe I have put my trust in a straw man. In my opinion 1and1, with CEO Oliver Mauss, is a horrible company and many customers have voiced a host of complaints on various blogs.
It should be a warning that when their phone is answered by a recording that tells you if you have gotten a notice from NCO, a collection agency, to press a certain number. If they are a reputable business, why do they have to send so many accounts to a collection agency?
Patrick Frey (Patterico) of the Los Angeles District Attorneys Office alleges his domain was high jacked and put up for auction on SEDO. SEDO is an associate company of 1and1.
Patterico: “I believe I’m facing massive incompetence, thievery, or very possibly a deliberate combination of the two. It feels like evil intent — but not for political reasons. It feels like cyber extortion — people going after the almighty dollar. Commenters have pointed out corporate ties between 1&1, which can’t seem to process my timely renewal, and Sedo/Domcollect, which stood to profit from 1&1’s failure. Usually, corporate incompetence does not earn the corporation money — but 1&1 and its related companies have found a way to make money off of their own slipshod procedures.”
Patterico was able to regain his domain.
Also Investigative journalist, Kelli Jack, has written 30 articles about this company and has a suit pending against them. Kelli alleges that 1and1 stole her domain name and sold it. Kelli states: “1and1 should be shut down.” As of today Kelli is working with the Pennsylvania Attorney General.
I have filed complaints with the Federal Bureau of Investigation, Federal Trade Commission, Eastern Pennsylvania Better Business Bureau, ICANN, and others. I recommend everyone else having a problem consider doing the same.

The Washington DC, Pennsylvania Better Business Bureau has them listed as “Unsatisfactory” Read comments on the BBB why. Read some customer comments on Red Flag.
Warth Publishing Inc

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