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How and when do we charge VAT?

This article explains more closely how VAT is charged and for what customers on Subbly. 


When do we charge VAT?

As of now, Subbly is charging an additional 20% VAT on top of the regular monthly/yearly invoice (transaction fees excluded!) if you are:

  1. located in the UK
  2. non-business entity located in the European Union

If you're located in the EU and you have business registered for VAT (tax), please make sure to provide the VAT number as explained below to avoid being charged for VAT on the Subbly invoice. 


What is VAT and why are we collecting it?

VAT stands as an abbreviation for value-added tax. It's a type of tax that's levied on top of the product or service price in jurisdictions where companies are mandated by the tax government to collect taxes on the goods/services they sold. 

United Kingdom imposes collection of VAT. Given that Subbly is an entity registered in the UK, we are mandated to collect taxes for all transactions with UK-based entities (companies or individuals), as well as for businesses registered within the European Union. 


How do we collect VAT?

Starting from the 1st of July, 2021, all transactions with the UK and EU-based non-business entities will have tax item added on top of the price of the invoice.

Taxes will be charged on top of the fixed subscription fee (fixed price of the subscription paid monthly/annually).

We are not collecting taxes on top of the transaction fees!
Taxes will be added as a separate line item on the invoice. You will be able to download/view your previous invoices at any point within your Subbly admin as explained HERE

How can you avoid being charged VAT

If you're located in the UK, as per the governing UK tax laws, we are unfortunately mandated to charge 20% VAT regardless if you have VAT number or not provided to your Subbly.

You can find additional information on VAT in the UK on the page HERE

However, if your business is located in the EU and you do have VAT number for it, please make sure to provide it by filling the appropriate field on the Billing section of your Subbly admin as in the picture below:

If you have any questions around this, please let us know on chat.

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