How to get charged the right EU VAT rate

  • Updated

When you make a purchase on our website, we are required by law to determine where the service will be consumed (State of Consumption) and charge VAT (sales tax) at your local rate unless you are in business or exempt.

We will determine where our services will be “consumed” by using the following pieces of information at the time of the purchase:

  • geolocation of your IPv4 address
  • country code of your mobile phone number (e.g. +44)
  • declared residential address

It is necessary that at least 2 out of 3 pieces indicate the same country, otherwise you won’t be able to place an order on our website.

Business-to-Business (B2B) supply

If you are in the EU (or deemed to), you’ll be treated as a business consumer only if you provide us with a VAT registration number which can be validated through the VIES.
Once your VAT is validated, we won’t charge you any VAT under the reverse charge scheme.

If you are in business, but you are not VAT-registered because, for example, you are below your EU member state’s VAT registration threshold, or your VAT number does not pass the validation, the supply will be treated as a business-to-consumer supply, and we’ll charge you the VAT at your local rate (you may be able to claim it back in your country).

Business-to-Consumer (B2C) supply

If you are in the EU (or deemed to), we’ll charge you the VAT at your local rate, unless you are exempt (e.g. special territories).

Problems

As you will be able to see the VAT we are going to charge you before you finalize the payment, if you think our presumptions about your VAT rate are wrong, please double-check the information you entered in your account, such as your residential address or your mobile phone number.

For example, if you are from the Canary Islands, make sure you don’t choose Spain as the country code of your mobile phone number or residential address.

If you are temporary abroad, try using your mobile data plan instead of local Wi-Fi, as this would give you an IPv4 address from your home country (country of the SIM card).

If, after you revised your information, you believe you’ll be charged the wrong VAT rate, please get in touch with us by opening a ticket (select Billing & Payments).

If you already paid and got an invoice, we can’t change or reverse it.

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