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Cloudways, being a Malta-based company, is required to charge taxes for certain countries to comply with the country's tax code and regulations. Previously, these taxes were billed to European and Singapore customers only. Starting from April 1st, 2023, we will also be collecting and remitting local taxes for customers located in Australia, Canada, India, and the USA.
The tax rate is completely dependent on your tax location. You can now apply for tax exemption by entering a valid Tax ID, e.g., VAT or GST ID, directly from the Cloudways Platform. Eligible businesses at certain locations can get tax exemptions for future invoices.
We have provided all the information you need to know about fiscal taxes at Cloudways and how it affects you as a Cloudways client.
Tax Details by Country
Here's a breakdown of the tax rate with respect to the country. You can click the links below to read the tax-related information for the desired country.
Countries | Tax Rate |
10% | |
Varies | |
Varies | |
18% | |
8% | |
20% | |
Varies |
How to View Your Tax Location & Rate
Log in to your Cloudways Platform using your email address and password.
From the top menu bar, open Profile.
Now, select Account.
Select Payment & Address.
Here, navigate to Billing Details. Under Tax Location, you will find your tax location and the applicable tax rate.
Additionally, you can estimate your upcoming invoice (as per your current usage levels and projected taxes) using the Real-time Billing feature. Please note that the Real-time billing features only give you an estimate; thus, it can not be considered a final invoice.
How Does Tax Affect Me?
To reiterate, Cloudways adds tax to the invoices for clients located in specific countries (listed in the above section). For instance, if your invoice amount is $22.50, and assume your tax rate is 20%, your total invoice will be $27.00, including tax. Cloudways charges a tax rate based on your tax location, and your invoice will also have subtotal and charged tax listed along with the total.
How to Update Tax Location
You can change your location by updating your billing address using the Cloudways Platform. If we incorrectly determined your tax location after you set the right billing address, please contact Cloudways support for help.
How to Apply for Tax Exemption
In order to get tax exemption on future invoices, you need to provide us with a valid Tax ID, e.g., VAT or GST ID. Once verified, eligible businesses at certain locations can get tax exemption for future invoices. The tax can not be exempted from the previous invoices. Here's how you can apply for tax exemption using the Cloudways Platform.
First of all, navigate to the Billing Information section. You can view the instructions here.
Under Tax ID, click Add Tax ID.
Next, enter your Tax ID and click Save.
FAQs
How does Cloudways determine my tax location?
Your billing address helps to determine the tax location which you provide when you sign up and upgrade your account. Please note that we are required by law to consider other account details at some locations, like other payment addresses or IP addresses.
How can I change my tax location?
You can change your location by updating your billing address using the Cloudways Platform. If we incorrectly determined your tax location after you set the right billing address, please contact Cloudways support for help.
How can I view my tax location and rate?
You can view your tax location and rate using the Accounts section in Cloudways Platform. Additionally, you can estimate your upcoming invoice (as per your current usage levels and projected taxes) using the Real-time Billing feature. Please note that the Real-time billing features only give you an estimate; thus, it can not be considered a final invoice.
Can I get a refund of the tax charge from the previous invoices?
Unfortunately, no reimbursement can be offered against the tax charge from previously paid invoices, as you should supply tax-related information when upgrading the account. However, registered businesses at certain locations can get a tax exemption for future invoices by entering a valid Tax ID, e.g., VAT or GST ID, directly from the Cloudways Platform.
My country is exempted from the VAT/GST; what should I do?
Cloudways Platform will detect your tax location, and if you are eligible for the tax exemption, you need to provide us with a valid VAT or GST ID using the Cloudways Platform. Once verified, your future invoices will be exempted from the tax charge.
My territory’s VAT rate is different from the standard rate of the country. Do I still have to pay the same VAT rate?
The displayed rate on the Cloudways Platform is the updated tax rate in your region which will be applicable on your invoices.
My EU country/territory is excluded from EU VAT rules. How can I get my correct territory added to get the VAT exemption?
You may share a document proof with us at [email protected] if your territory/country is excluded from EU VAT.
I had entered the tax ID, yet my tax was deducted; why is that so?
We suggest verifying the tax ID first, and if it is incorrect, please add the correct one. The tax is still deducted in case of the wrong tax ID.
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