Account: What is European Union Value Added Tax (VAT), and who may be charged VAT?

Modified on Sat, 09 Dec 2017 at 04:50 AM

Answer ID 1692

What is European Union Value Added Tax (VAT), and who may be charged VAT?

What is European Union Value Added Tax (VAT)?

VAT (Value Added Tax) is a tax on consumer spending within the territory of a European Union (EU) Member State. VAT is not included in prices displayed on the site. When applicable, VAT is charged separately and will be itemized on invoices and billing information.  VATs are NOT Refundable.

You are  a U.S. company. Why are you collecting VAT?

As a non-EU supplier of electronically supplied services (domain registrations, SSL certs, etc.) we are required to account for VAT on these services provided to EU non-business customers.  We are required to comply with Council Directive 2006/112/EC on the common system of value added tax.

We have opted to register for VAT under the special arrangement for non-EU suppliers of electronic services, also known as the Mini One-Stop Shop (MOSS), in accordance with Article 357 to 369 of the above EC Directive rather than register for VAT in each EU member state individually.  Therefore, we are collecting VAT and will be paying the EU, via Ireland where we are registered, on a quarterly basis. 

Since we are registered for VAT under MOSS, we are required to charge VAT to non-business customers at the rate which applies in the customer's member.

Who may be charged VAT?

As a non-EU supplier of domain and web hosting services to customers in the European Union (EU), we are required to comply with the European VAT (Value Added Tax) regulations and charge VAT to non-business customers located in the EU.

Customers categorized as Business or Charity users in the EU may be required to self-account for VAT.  For us to determine if you may fall into this category and not charge you VAT, you must supply your VAT number. If you are not familiar with the VAT self-accounting rules in your country, please contact your accountant or professional adviser for more information.

You can check the validity of your VAT number here:

Please note that in order for your VAT number to work, the VAT number must be an EU VAT. In-Country only VAT numbers, such as those used within your country, may not be valid. You will need to apply for an EU VAT. For example, a VAT for Spain is only valid for conducting business in Spain. If you do business outside of Spain, you will need to apply for an EU VAT, which is what we verify.

Do you have a VAT number?

We are a registered company for VAT under MOSS in Ireland as a non-EU supplier of electronic services, and have our own VAT Number.  Our number is EU372003356.  We are collecting VAT in Business to Customer sales only.  All customers supplying a valid VAT number will not be charged VAT.  Instead they’ll self report under the reverse-charge scheme for EU VAT.

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