Does Sliptree charge VAT?

Value Added Tax

Depending on your location, your organization might be charged VAT when paying for Sliptree. We use the term organization to describe our users companies, whether they are companies or singular or numerous users.

For organizations based in the European Union we determine your organization location based on the address you enter. We validate this based on your IP address and payment card details.

As of 1st January 2015 all EU companies that sell digital goods online must comply with the following rules:

if the company sells to any countries in the EU, they will have to charge VAT in the country of the buyer instead of the seller.
if the receiving party of the digital goods is a consumer, the company has to charge the VAT percentage from the country of the buyer
if the receiving party of the digital goods is a company (with a valid VAT number) a reverse charge mechanism is in order, in understandable English this means there is a 0 percent VAT charge.
if the receiving party of the digital goods is a company without a VAT number or has an incorrect VAT number, the VAT of the country of the buyer must be charged.
if the company sells digital goods to companies or consumers in their own country, local VAT needs to be charged.

How does this impact my billing with Sliptree?

Since Sliptree is an Estonian limited company the price of the Unlimited Plan (€19 or £15 per month) is inclusive of the local VAT rate (20%).

Specifically:

For all EU businesses with a valid VAT ID, we calculate the base price as €19, but deduct the VAT (at 20%) so the cost to you is only €15.83ˇ
For all EU businesses without a VAT ID the price will be €19
For all non-EU businesses (or users based outside of the EU) we do not charge VAT hence the cost will be €15.83*

ˇExcluding Estonian businesses, which includes the local VAT rate hence the price will be €19.

*Please note we do not add US Sales Tax for US based businesses.

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Examples of when VAT could or could not be applied

Organizations with valid VAT ID numbers:

UK based organizations:

VAT will not be added - VAT is excluded in the Unlimited Plan price.

Finnish based organizations:

VAT will not be added - VAT is excluded in the Unlimited Plan price.

Estonian based organizations:

VAT WILL be added - as Sliptree is an Estonian company, VAT is included in the Unlimited Plan price.

Non-EU based organizations:

VAT will not be added - VAT is excluded in the Unlimited Plan price.

Organizations with no or invalid VAT ID numbers:

UK based organizations:

VAT WILL be added - VAT will be included in the Unlimited Plan price.

Finnish based organizations:

VAT WILL be added - VAT will be included in the Unlimited Plan price.

Estonian based organizations:

VAT WILL be added - VAT will be included in the Unlimited Plan price.

Non-EU based organizations:

VAT will not be added - VAT will be excluded in the Unlimited Plan price.