VAT and Proxy Servers

The message I got from LL about paying VAT stated that they knew from my IP address that I was based in the EU.

Get that? From my IP address, not from my sign-up details.

Does this mean that anyone who wants to avoid paying VAT simply has to cancel their premium account, create a new alt, using phoney data, and do it all via a US-Based proxy server?

I wouldn't do this, of course, but can really be as simple as that?

Rock

That's not good, the IP address of my ISP (Namesco) is listed as being within the Czech Republic, but they are a UK ISP (who are absolute fuds but that's a different matter).

I'm sure I registered as being in the UK. IP address is a stupid way of doing this, surely it should go by credit-card or something? Don't exchanges from USD to GBP have some customs fee on it anyway, surely that's all the tax we need anyway.

That's not good, the IP address of my ISP (Namesco) is listed as being within the Czech Republic, but they are a UK ISP (who are absolute fuds but that's a different matter).

I'm sure I registered as being in the UK. IP address is a stupid way of doing this, surely it should go by credit-card or something? Don't exchanges from USD to GBP have some customs fee on it anyway, surely that's all the tax we need anyway.

LL looks at your registration info first...but then they check it against your IP address.

If the IP shows you're really in, say, the UK instead of in New Jersey like you said you were, they'll charge you VAT.

A bad idea, and I doubt it will happen. Non EU citizens visit the EU all the time. They may access SL while in the EU, but that doesn't mean they should be paying VAT for a contract that was initiated back home. Also, people use proxy servers in other countries, in other continents. I have one setup on a server that I rent from an Ohio WPP for example. Some ISP's IPs aren't even registered in their home country (the IP I had with my last ISP was in Holland, even though I'm in the UK).

Frankly, I think the IP information is BS. It might be useful when investigating VAT fraud, but scanning the database for IPs whose geographical locations aren't on the same continent as user's home addresses seems like a flawed, error prone and disruptive thing to do.

But if you were say an Island owner and you took this route and you got caught you would no longer be an Island owner would you. Perhaps not such a good idea then.

Walker, it's ALREADY happened. I read this information as a direct quote from LL (wish I could remember now exactly where I saw it, I'd give you the URL. Maybe it was in that email they sent the EU customers).

And since when has "flawed, error prone, and disruptive" stopped LL from charging ahead?

I believe they do let you appeal their decision. Given past performance, that'll take a couple of months of dropping protests into a black hole.

It *is* a bad idea, but that is not stopping them doing it *right now*....

I have an open ticket on this, I hope it gets looked at before I travel early next week!

From the VAT info (of all places...)

So accessing SL from another country is risking a review, or even suspension...

And WORSE, since IP address to country tracking it HORRIBLY error prone you could find your self booted or troubled beyond reason for no fault of your own (several people already have been reported as being shaken down for VAT in non-EU countries like Canada and Japan.)

Ok. I think you've given us enough to be pretty sure that this is precisely the way that LL are doing it. - flawed, error prone and disruptive