It shouldn’t be news to any domain name holders that live in the Europe but if you do and use a European domain name registrar they are required to collect Value Added Tax (VAT) for each transaction.
The VAT is like a sales tax in the United States but higher than any state’s sales tax.
Up to now Bahamas.bs a domain name registrar originated under the country of the Bahamas was not required to collect or charge any such taxes however now that the registrar has been acquired by CentralNic a company headquartered in London, customers of Internet.bs that are located in Europe have started to get notices that Internet.bs will start charging (collecting) VAT taxes from European customers.
One domainer reported in a comment on thedomains.com:
“and now they are sending notices to EU customers with a 4 days advance, stating that they will be asking a VAT.”
The VAT is a pass through tax, its not something that is going to go to Central Nic but for customers in Europe it is an additional cost.