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SOAX VAT rules and tax information

This article explains how VAT (Value Added Tax) is applied to SOAX purchases, who it affects, and what steps you may need to take to ensure your billing information is correct

Kate avatar
Written by Kate
Updated this week

To stay fully compliant with tax regulations, SOAX applies Value Added Tax (VAT) to customers located in regions where VAT is required, including the European Union (EU) and the United Kingdom (UK).

If you’re based outside these regions, VAT will not be added to your invoices.

For EU and UK customers

Business customers (B2B)

If your business is VAT-registered:

  • You can add your company VAT ID to your billing information

  • Once validated, your invoices will be issued under the reverse charge mechanism, meaning no VAT will be charged by SOAX.

  • You’ll be able to report and reclaim VAT according to your country’s rules

If your VAT ID is not provided or invalid, VAT will automatically be added to your invoices at your country’s standard rate.

Individual customers (B2C)

If you’re purchasing as an individual (without a VAT ID):

  • VAT will be automatically applied based on your billing country

  • The VAT rate will match the local rate in your country of residence

VAT rates and calculation

The VAT rate is determined by your billing address country and follows the official local rate for that region.

To ensure accurate tax calculation, please ensure your billing address is accurate and up-to-date.

Below are the VAT rates applicable to our EU customers.

VAT rates

  • Austria: 20%

  • Belgium: 21%

  • Bulgaria: 20%

  • Croatia: 25%

  • Cyprus: 19%

  • Czech Republic: 21%

  • Denmark: 25%

  • Estonia: 24%

  • 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: 21%

  • Slovakia: 23%

  • 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

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

Who needs to pay VAT?

Customers based in the EU and UK are subject to VAT rules. Customers in other regions are not charged VAT.

What happens if I don’t add my VAT ID?

VAT will automatically be applied at your country’s standard rate.

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

Yes, if you’re a registered business with a valid VAT ID and it’s added to your billing details, VAT won’t be charged by SOAX. Instead, you’ll handle VAT through your local tax authorities under the reverse charge mechanism.

What is the reverse charge mechanism?

It allows B2B customers to self-account for VAT, meaning SOAX won’t charge VAT, and you report it to your local tax office.

Can I update my VAT ID later?

Yes, you can add or update your VAT ID at any time from your dashboard.

Will I see VAT on my invoice?

Yes, if VAT applies to your purchase, it will be clearly shown on your invoice along with the rate and amount.

If you’re a VAT-registered business using the reverse charge mechanism, your invoice will include a note indicating “VAT reverse charge - customer to account for VAT.”

Will VAT be charged during checkout?

Yes, VAT will be clearly displayed during the checkout process, allowing you to 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.

Does this apply to crypto payments or prepaid balances?

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're unsure whether VAT applies to you or need help updating your billing information, just reach out to us in the live chat.

We'll be happy to help ensure everything is set up correctly 💙

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