[adamt]

Whether or not VAT is payable is independent of what currency is used to bill in. If you're using a VPS in the UK then there's almost certainly VAT payable by the vendor. If they are in another EU country, and you're VAT registered, and they have your VAT number they can zero-rate the transaction.

[corford]

Yeah, I'm talking for retail customers who don't have a VAT number and can't benefit from the reverse charge scheme.

[kintamanimatt]

They can do that if you're in the same country too.