European Union VAT
IMPORTANT
Information in this communication does not constitute tax, legal, or other professional advice. If you have questions, please contact your tax, legal, or other professional advisor.
What is value added tax (VAT)?
In accordance with the laws governing members of the European Union (EU), WP Engine is required to charge value added tax (VAT) on all digital products and services provided to customers residing in member countries of the EU. We are required to collect VAT from our EU customers and remit it to the respective EU member states. VAT is charged in accordance with local legislation in each member state.
Why is WP Engine collecting VAT on EU sales?
Under EU VAT rules, WP Engine will calculate and collect VAT on sales to EU customers who do not have an EU VAT registration ID and are a resident of an EU member state. If you are a resident of an EU member state and have an EU VAT ID, please provide WP Engine with your VAT ID to avoid having VAT applied to your invoice.
Does VAT apply to me?
Under EU VAT rules, WP Engine will calculate and collect VAT on sales to EU customers who do not have an EU VAT registration ID and are a resident of an EU member state. Consumers are not typically issued EU VAT IDs and sales will be subject to VAT collection.
How do I obtain an EU VAT registration ID?
Businesses must register with their respective EU Member State to obtain an EU VAT ID. In most European countries, you can register online on the tax authority’s website for the country where you would like to register. Registering for EU VAT may lead to several associated compliance requirements.
How do I enter my VAT registration ID into the User Portal?
To provide your EU VAT registration ID, login via the User Portal and click the “Update Contact Info” dropdown caret. Once here, enter your EU VAT registration ID in the “VAT/GST ID” field and click Update.
How does WP Engine calculate the VAT amount for each sale?
If WP Engine determines that EU VAT should be collected, WP Engine will charge the standard rate of VAT as defined by the EU member state associated with your billing address.
Am I required to do anything if I am not a resident of an EU member state?
If you are not a resident of an EU member state and do not have an EU VAT registration ID you do not need to provide any information regarding EU VAT. Consult your tax advisor to help you understand if you have VAT obligations in the EU.
Will I be retroactively charged for VAT?
WP Engine will not be retroactively charging customers VAT. VAT will be based off of the invoicing date and included on all invoices issued after 12/1/17.
Example 1
If an annual subscription renews and is invoiced on 11/29/17, VAT will not be included on that invoice. However, the following annual renewal date of 11/29/18 will include VAT if a valid VAT ID is not provided.
Example 2
If an annual renewal date is 5/1/18, the 5/1/18 renewal invoice will include VAT for the 5/1/18 – 4/30/19 period and no additional VAT will be added for the retroactive period of 12/1/17 – 4/30/18.
