As part of ongoing improvements, we’ve recently made some updates to our billing systems.
VideoAsk is registered for VAT in the EU and this means that we need to migrate all of our EU customers from VAT-inclusive to VAT-exclusive rates. To keep in line with EU tax laws, we're required to charge VAT on subscriptions to all EU customers.
This means that you will see additional charges on your VideoAsk invoices starting from mid-February 2023 if you are on a VAT-inclusive tax rate.
If you're a VAT-registered business in the EU but haven't added your VAT number yet, here are instructions on how to add your VAT number to your billing details to exclude VAT from your purchase.
Note: If your billing address is located in Spain, you'll be charged VAT regardless of whether you add a VAT number, as VideoAsk is a provider based in Spain.
Keep reading for more information.
What is VAT?
Value Added Tax, or VAT, in the European Union, is a general, broadly-based consumption tax based on the value added to goods and services.
What's the difference between VAT-inclusive and VAT-exclusive?
VAT-inclusive means tax is included in the invoice subtotal and VAT-exclusive means tax is applied on top of the price.
How do I know if I have a VAT-inclusive or VAT-exclusive tax rate?
You can check your invoices to see if you have a VAT-inclusive or VAT-exclusive tax rate on your subscription.
- A VAT-inclusive subscription invoice does not show a VAT tax amount in the subtotal.
- A VAT-exclusive subscription invoice shows the VAT tax amount and percentage added to the subtotal.
How does this change affect me?
If you're a non-business in the EU currently on a VAT-inclusive rate, you will now be charged VAT on your subscription. VAT was previously included in your subscription price but VAT will now be added to your subscription price at checkout.
If you're a business in the EU (except Spain) and have already added your VAT number to your account, you won’t be charged VAT but you will see an increase in your subscription price if you are currently on a VAT-inclusive rate. This is because you previously had a discount applied to your VAT-inclusive rate - meaning you received an additional discount (your VAT rate) on your VideoAsk subscription’s full price.
Below is an example with rounded numbers and does not reflect actual prices. The numbers used are for example purposes only.
If the subscription was €100 and your VAT rate was 20%, the total cost would be €120.
If you added a VAT number to your billing details, this would remove the 20% VAT rate and the total cost would be €100.
However, your subscription price received an additional 20% (your VAT rate) discount on the total cost of €100, resulting in you only paying €80.
The change from VAT-inclusive to VAT-exclusive rates removes the additional discount and you will see an increase in your subscription price.
The price increase will vary depending on the VAT rate in your country.
Where is VideoAsk collecting VAT?
VAT will be collected if you're a non-business customer, or you’re a business customer but haven’t added your VAT number, and your VideoAsk billing address is in the EU.
If your billing address is located in Spain, you'll be charged VAT regardless of whether you have added a VAT number, as VideoAsk is a provider based in Spain.
How much more will I have to pay?
The exact amount will vary depending on the VAT rates in your billing country.
When will I see VAT charges on my VideoAsk invoice?
VideoAsk will begin collecting VAT on invoices starting mid-February 2023. Once in effect, you’ll see the charge on all subsequent invoices.
How can I add a VAT number to my VideoAsk account?
If you’re a VAT-registered business in the EU, you can add a VAT number to your account by updating your billing information.
If you have any questions or concerns about these upcoming changes, please feel free to reach out to our Support team for further information by clicking the Videoask us button at the bottom of this page.