VAT email

  • Unknown's avatar
    markso3054 · Member ·

    I received an email today stating that WordPress.com will start charging VAT on my subscription and that i should add my VAT information. My website is a review blog and a hobby, it’s not a business. Anyone else has similar, i’ve no idea what it means as i don’t even have a subscription.

    WP.com: Yes
    Correct account: Yes

    The blog I need help with is: (visible only to logged in users)

  • staff-totoro · Staff ·

    Hi there,

    I see that you upgraded to the Personal Plan, which you later cancelled and refunded. To explain the email, we’re required to notify EU residents of this change and while it does not affect you currently, I think that because you had made a purchase in the past we opted to email you in case you decide to upgrade in the future.

    If you wish you can add your VAT info here, but if you do not plan to upgrade then you can ignore the email. Thanks!

  • Unknown's avatar
    belpri · Member ·

    A person in the EU does not have a VAT-number. Only companies do. I got this email too and my website is not a business but a blog about my hobby. I do not have a businesss plan subscription at WordPress. Thanks for this mail and not-working form. It pushes my decision forward about moving my website to WordPress.org and host it in the EU. Cheaper and I can get rid of the Gutenberg disaster (does not work in Safari and on iPads to start with) too.

  • Unknown's avatar
    grandgirl · Member ·

    I too got the WordPress email saying VAT will be charged from January 2023. – in accordance with the tax rules of one’s country. What is this all about?
    Like you, my blog is a hobby. The U.K. ‘Value added tax’ is for businesses.

    If WordPress are going to charge an extra 10 or 20 per cent on annual renewal, I will have to think of stopping.

  • supernovia · Staff ·

    Folks, I understand businesses and other entities can enter VAT details to indicate they have differences because they’re a business. We’ll confirm for sure, but this may help too:

    https://wordpress.com/support/value-added-tax-vat/

    (edited to clarify: exempt isn’t the right word, but businesses can have different VAT and we’d need details for that)

  • Unknown's avatar
    grandgirl · Member ·

    The UK Revenue and Customs collect VAT payments on goods bought and sold and imported to UK. A subscription to WordPress is nothing to do with buying anything.
    and what happens to any VAT payment WordPress collects?

  • Unknown's avatar
    belpri · Member ·

    @grandgirl Of course is a WordPress subscription is buying something. You pay for it. You receive a service. VAT in the Netherlands is 21 percent. So my subscription will be a lot more expensive from now on.

  • Unknown's avatar
    grandgirl · Member ·

    Of Course. You are right- W/P is providing a service. UKVAT is also 20%. I just can’t get answers from W/P. 1. Why is this charge starting now. 2 why can’t they tell me how much it will be. 3. How does a US company collect a British tax which is due to the UK Govt.

  • Unknown's avatar
    helper-heroponriki · Member ·

    @grandgirl – to answer your questions:

    1. Starting January 30, 2023, in accordance with the tax rules in your country, we are now charging VAT. This will take place the next time the plan or subscription renews. 
    2. The rate varies depending on the country you enter at checkout. In your case, you said the UK VAT is 20%, so the VAT tax would be 20% of your total purchase.
    3. Since we sell digital products to people in countries subject to VAT tax, we’re obligated to do so. You can review the UK’s rules on this matter for your specific case.

    I hope that clarifies things!

  • Unknown's avatar
    grandgirl · Member ·

    I still would like to know why this tax charge is starting now .
    And is WordPress registered to pay U.K. VAT?
    and then I can decide if I want to pay another 20% above the $66 I pay annually now.

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