It will be interesting to see how this works itself out - it is exactly the same kind of thing that I'm wondering about (we have an offshore server, and use a few other offshore services too). I wonder if PayPal potentially offers a work around (in the case that the offshore company withdraws their services). Alternatively there are going to be a lot of people scrambling to organise offshore credit cards.
Just to make it clear, I have no problem paying the VAT, I'm just concerned about how this is going to work itself out practically and what the knock-on effect will be.
I would be pretty satisfied with the system Victor has suggested.
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