Subscription Taxes and VAT

Article author
Vera
  • Updated

Overview

AppFollow is legally obliged to collect sales tax on behalf of our customers. 

The applicable tax is calculated automatically based on the Billing details.  The Company Name, Billing Address, and VAT ID (for EU countries) are required for tax calculation.

To manage your billing settings, open your AppFollow settings, and go to Subscriptions -> Billing Settings.

Taxes in the EU 

If you are located within the European Union, we are legally obliged to charge VAT at the prevailing rate for our location.

If you are a business with a valid VAT ID, you can add your VAT ID and we will not add VAT to your charges.

For individuals or accounts without a specified VAT ID, the tax is 24%.

  • VAT ID is specified -> Tax 0%
  • VAT ID is not specified -> Tax 24%
  • Individuals -> Tax 24%

Taxes in Russia 

If you are located in Russia, the tax is 20%.

  • Russia -> Tax 20%

Taxes in Other Countries

If your business is located in a country not listed above, and your billing settings are added, no tax is charged.

If billing settings are not specified in your AppFollow account, we will charge a tax of 24%.

  • Billing Settings are specified -> Tax 0%
  • Billing Settings are not specified -> Tax 24%

You'll be able to review the total amount due before checkout.

Examples for better understanding

For all clients who registered their company in Russia we always charge 20% VAT. If the company is not from the Russian Federation, but the card issued in Russia, we also charge 20%. The country of registration has a higher weight than the card, except for Russian cards.


For instance: a client registered in Italy with an Italian VAT ID pays with a Russian card, then the tax is 20%; an Italian client with an Italian card and with an Italian VAT ID - 0%; an Italian client with an Italian card but without an Italian VAT ID - 24%.


In general, it is important to mention the VAT ID Numbers, because it is always 24% VAT for EU companies that cannot provide VAT ID).

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