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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. a non-business entity located in the European Union

If you're located in the EU and you have a 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 the 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 items added on top of the price of the invoice.

Taxes will be charged on top of the fixed subscription fee (the 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 a 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 a VAT number for it, please make sure to provide it by filling in the appropriate field on the Billing section of your Subbly admin as in the picture below:

If the Country of trade is different from the business registered address within Subbly, you will still be charged VAT even if the tax VAT number was provided.
For example, if your business is registered in France, and your Country of trade selected is the UK, since you are providing your services for UK customers, you will be charged VAT based on where you are providing your services. Therefore, if your business is registered in France, the Country of trade selected in France, and the VAT number is provided, you won't be charged VAT on top of your subscription.

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

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