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Important VAT update for EU customers
Important VAT update for EU customers

This article explains the upcoming VAT changes for EU customers, how it affects you, and what steps to take to ensure correct VAT calculation.

Kate avatar
Written by Kate
Updated over 2 weeks ago

We’re excited to announce a significant update for our EU customers! As part of our continued growth and commitment to compliance with local regulations, SOAX will begin applying Value Added Tax (VAT) to all orders from customers based in the European Union. This change aligns with the European Union's VAT One Stop Shop (OSS) system.

Important:
These VAT changes for EU customers will be effective from January 15, 2025.

Here’s what this means for you

For Business customers (B2B)

If your business is VAT-registered, VAT will be added to your invoices based on your country’s rate. However, you’ll be able to reclaim the VAT through your local tax authorities, which can help offset your expenses.

For Individual customers (B2C)

For personal purchases, VAT will be added to your invoices according to the rate in your country. If you’re not VAT-registered, this will impact the total cost of your order.

VAT rates by country

Below are the VAT rates that will apply to our EU customers, effective from January 15, 2025.

VAT rates

  • Austria: 20%

  • Belgium: 21%

  • Bulgaria: 20%

  • Croatia: 25%

  • Cyprus: 19%

  • Czech Republic: 21%

  • Denmark: 25%

  • Estonia: 22%

  • Finland: 25.5%

  • France: 20%

  • Germany: 19%

  • Greece: 24%

  • Hungary: 27%

  • Ireland: 23%

  • Italy: 22%

  • Latvia: 21%

  • Lithuania: 21%

  • Luxembourg: 17%

  • Malta: 18%

  • The Netherlands: 21%

  • Poland: 23%

  • Portugal: 23%

  • Romania: 19%

  • Slovakia: 20%

  • Slovenia: 22%

  • Spain: 21%

  • Sweden: 25%

  • United Kingdom: 20%

    * For accurate information on the applicable tax rate in your country, please refer to your local tax authorities

Please make sure that your billing address is correct to ensure the accurate VAT rate is applied to your order.

Next steps for EU customers

  • Update your Billing address:
    Please make sure that your billing address is correct and reflects your current location. This ensures that VAT is calculated correctly according to your country’s rate.

  • For Business customers (B2B):
    If you are VAT-registered, make sure to add your VAT number to your account. This will allow you to reclaim VAT from your local tax authorities.

  • For Individual customers (B2C):
    Ensure your billing address is accurate to avoid any delays in processing.

How to update your Billing address

To ensure that your billing address is up-to-date, follow the steps below:

  1. Click the Billing button on your dashboard sidebar to access the Billing tab.

  2. Choose the 'Edit Payment Methods' button located in the top right corner.

  3. Click on 'Billing & Shipping Addresses' to manage your Billing address.

  4. Click on your address field, replace it with your current address, and click 'Update' to save the changes.

Frequently asked questions

Will I see VAT on my invoice?

Yes, VAT will be reflected on all invoices starting January 15, 2025. You will receive a detailed breakdown of the VAT applied.

Can I avoid VAT charges if I register as a business?

Yes, if you register as a VAT-registered business, you can claim back the VAT through your local tax authorities.

Will VAT be applied to previous orders?

No, this change will only apply to orders placed on or after January 15, 2025.

How can I update my account to ensure VAT is calculated correctly?

To make sure VAT is calculated correctly, please make sure your billing address is up to date with your current country of residence. For B2B customers, adding your VAT number is essential.

Will VAT be charged during checkout?

Yes, VAT will be clearly displayed during the checkout process so you can see the full breakdown before completing your order.

Can I pay in a different currency to avoid VAT?

No, VAT will be applied based on the country of your billing address, regardless of the currency you choose.

Will VAT be applied to cryptocurrency payments?

Yes, VAT will be applied to cryptocurrency payments as it is treated like other payment methods. The VAT rate will depend on your billing address and the corresponding country’s regulations.

Need Help?
If you have any questions or need help, please feel free to contact our support team via live chat. We're here to help!

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