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I have just found where that Rackspace decision to add VAT to the price resulted from. First I wanted to edit the previous article, but then decided to leave it as is. It’s still correct except a couple of details.

These details are as follows.

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Yesterday I received an email message from Rackspace:

“Dear Igor Simonov,

The Rackspace Cloud would like to inform you of an important change to our billing system that will enable us to correctly handle VAT invoicing for our European customers.

As an existing Rackspace Cloud customer, you will need to enter your VAT registration number in your control panel prior to January 1, 2010 to avoid being charged the 17.5% tax for VAT. If you do not have a VAT ID number, or choose not to supply one, The Rackspace Cloud will begin charging you the 17.5% VAT tax on all invoices after January 1, 2010.”

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Rackspace Cloud is a division of Rackspace focused on cloud technologies development. Their own service (actually three – Rackspace Cloud Servers, Rackspace Cloud Files and Rackspace Cloud Sites) is based on the recently acquired Slicehost VPS servers infrastructure. Since I am a Slicehost client myself and have many clients being hosted there, I was really curious how the Rackspace services look like.

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