On January 1st 2015, new laws come into effect which change the way EU businesses charge Value Added Tax (VAT) for digital services. If you are liable to pay VAT in the EU then this may affect how much you pay for GoSquared.
What’s actually changing?
Currently, if you are liable to pay EU VAT then GoSquared charges VAT at the UK rate of 20.0% (because we’re a UK company). As of January, however, we will charge VAT at the rate of your (the customer’s) country, whatever that may be. This means that you may end up paying more (or less) overall for your GoSquared subscription.
I’m not from the EU, how does this affect me?
It doesn’t! These rules only apply to customers from the EU so we don’t charge you VAT and that will continue to be the case.
When is VAT charged?
In the UK, VAT will be charged on all transactions. If you are VAT-registered, you should provide your VAT number with your billing information so that it appears on your invoice.
Elsewhere in the EU, VAT will not be charged if you provide a valid VAT number (this is exactly the same as before). If you do not provide a VAT number, then VAT will be charged at your country’s rate, as listed here.
Outside the EU, VAT is not charged.
What happens now?
Right now, if you are in the EU, you should should check your billing information to ensure your country is correctly set and you have provided a VAT number if applicable.