Value Added Taxes (VAT)

Overview

The European Commission mandates that web-hosting service providers outside of the EU apply a Value-Added Tax (VAT) to their services for customers residing within the EU (and other localities. E.g. Norway and the UK).

Businesses or charitable organizations that self-account for VAT through a "reverse-charge" mechanism can be eligible for exemption from this tax. To be considered for this exemption, your organization must furnish a business name along with a valid VAT ID number.

All prices listed on the DreamHost website do not include VAT. For organizations that are not exempt, VAT is calculated and charged separately in compliance with the EU (and other localities. E.g. Norway and the UK) taxation guidelines.

The following describes where VAT is collected and how to make changes to your tax status within the DreamHost panel.

What countries collect VAT?

The following countries currently collect VAT:

  • Austria
  • Belgium
  • Bulgaria
  • Croatia
  • Cypress
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Germany
  • Greece
  • Hungary
  • Ireland
  • Italy
  • Latvia
  • Lithuania
  • Luxembourg
  • Malta
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Romania
  • Slovakia
  • Slovenia
  • Spain
  • Sweden
  • United Kingdom

Updating your tax exempt status

To make changes to your VAT exemption status:

  1. Navigate to the Profile & Privacy page in the DreamHost panel.
  2. Click the Edit button in the Contact Information section. Only the DreamHost account owner can make changes to this section.
  3. Select Business under the Account Use drop-down menu.
  4. Enter your business name.
  5. Toggle the I am tax exempt radio button to the enabled position.
  6. Enter your VAT ID number.
  7. When finished, click the Save Changes button.

    Please be sure you enter a valid VAT ID number. An invalid VAT ID can result in the collection of VAT.

What if my VAT ID fails?

If you receive an invalid VAT ID error, you can check the following sites for more information (such as the validity of the ID, database status, or formatting issues):

Frequently asked questions

Why am I being charged VAT?

DreamHost determines VAT eligibility based on the address listed on the account in question. If you reside in a locality that requires VAT to be charged, DreamHost will apply VAT as required.

Can I have my VAT ID added to my invoices?

DreamHost currently supports adding VAT IDs for the countries listed in the What countries collect VAT? section above. When you add your valid VAT ID, invoices will also show DreamHost’s VAT ID.

Can I be exempted from VAT without a valid VAT ID?

DreamHost is unable to exempt customers from VAT without a valid VAT ID. In cases like this, you may want to speak to a local tax expert about how you may be eligible to reverse those taxes locally.

I live in a VAT-exempt country or territory – will I be charged VAT?

DreamHost validates tax liability based on the address listed on your DreamHost account. Exempted countries or territories will be excluded from paying VAT, as per local laws and regulations.

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Article last updated PST.

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