Why am I being charged VAT?
Last updated: November 10th 2022
As we are a company based in the European Union, specifically Denmark, we are charged with collecting VAT from EU Citizens who do not represent a company. In this short article we outline in which cases we charge VAT and when we do not.
When do we charge VAT?
The conditions for triggering a VAT charge on your bills/charges from Webdock are quite simple:
- You must be in a country from within the EU
- You do not have a valid VAT ID added to your account
The only exception is if you are based in Denmark as then you will always be charged VAT under all circumstances even if you have a VAT ID added to your account.
If you are in the EU, outside of Denmark, and represent a company you can avoid paying VAT by adding a valid VAT ID to your account. You were prompted to do so when you made your first payment to us, but if you for some reason did not fill this field at that time you can always add/update it later. In order to add or update a VAT ID, please go to your Account area and click on Edit Profile. On this screen you will find the VAT ID field.
Please note: VAT IDs are validated in real-time against the EU VIES database for validity. If your local tax authorities are having IT problems you may get an erroneous failure here. In which case, be in touch with Webdock support and send your VAT ID which we will then manually validate and add to your account for you.
When don't we charge VAT?
The inverse of the above is true here, meaning we do not charge VAT if:
- The country specified in your account is outside the EU
- OR you have a valid VAT ID added to your account and are based in the EU (outside of Denmark)
We hope this clears up any confusion and explains how VAT charges work and in which cases they are applied. Please be in touch with Webdock Support if you have any further questions.