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- Knowledge Base
- European Union VAT Charges
European Union VAT Charges
Updated by Taylor Sloane
For some of our European customers we have to add VAT at checkout. If you're an accountant that'll be music to your ears. If you're a regular person you probably wanna throw me out of a window. But hey, that's the price we pay for free healthcare. Probably. ¯\_(ツ)_/¯
To make matters more confusing the 2015 EU VAT place of supply rules for digital goods (now that's a mouthful!) apply. So each EU member state pays a different rate of VAT.
Here's who we're required to charge VAT and who gets off easy:
🏬 Business Type
📄 Valid VAT number?
💶 VAT Payable
Business or consumer in the EU
Business in the EU (excluding the UK)
Local VAT is reverse charged, so you pay $0 at point of sale
Business in the UK
UK VAT (but you can reclaim this on your VAT return)
Business or consumer outside of the EU
We're as unhappy about charging you extra dollars as you are at being charged. It's not like it's funding the annual team retreat or anything. Nope. It goes to the VAT man in large chunks every quarter 😫
If this all sounds confusing it's because it is. We'll calculate all this automatically for you at checkout so you'll pay the correct rate depending on your status. Any problems, get in touch with support from inside your account.