Note: This article is only for residents and businesses based in the EU and Singapore region.
Cloudways, being a Malta-based company, is required to charge Value Added Tax (VAT) to EU-based businesses and EU residents to comply with the EU VAT code and regulations. From January 1st, 2020, Cloudways has started adding Goods and Services Tax (GST) to invoices for clients based in Singapore.
We have provided all the information you need to know about fiscal taxes at Cloudways and how it affects you as a Cloudways client. So, pick the type of tax applicable to you from the below choices to get more information on how these taxes affect you as a Cloudways client.
EU Value Added Tax (VAT)
What is VAT?
The Value Added Tax, or VAT, in the European Union is a general, broadly based consumption tax assessed on the value added to goods and services. It applies more or less to all goods and services that are bought and sold for use or consumption in the European Union. Thus, goods which are sold for export or services which are sold to customers abroad are normally not subject to VAT. Conversely, imports are taxed to keep the system fair for EU producers so that they can compete on equal terms on the European market with suppliers situated outside the Union.
— Definition by European Commission
How Does VAT Affect Me?
To reiterate that Cloudways adds Value Added Tax (VAT) to the invoices for clients located in the EU region. For instance, if your invoice amount is $22.50 and let’s assume your country’s current VAT rate is 20%*, your total invoice will be $27.00, including VAT. Cloudways charges a VAT rate based on your selected country, and your invoice will also have subtotal and charged tax listed along with the total, as shown in the image below.
How to Get a VAT Exemption?
EU business customers can get VAT exemption in future invoices by adding the valid EU VAT number while upgrading the account. You can provide your EU VAT number along with the business name by emailing us at email@example.com. Your future invoices will be exempted from their charge once your EU VAT number is verified on VIES.
Please be advised that providing us a VAT number will not update the previously paid invoices; however, all future invoices will be VAT exempted if a valid VAT ID is submitted.
Customers from Malta will receive a VAT charge on their invoices regardless of having a valid VAT number as per the Maltese VAT Act.
Singapore Goods and Services Tax (GST)
What is GST?
Goods and Services Tax or GST is a broad-based consumption tax levied on the import of goods (collected by Singapore Customs), as well as nearly all supplies of goods and services in Singapore. In other countries, GST is known as the Value-Added Tax or VAT.
— Definition by IRAS
How Does GST Affect Me?
To reiterate that Cloudways adds Goods and Services Tax (GST) to the invoices for clients located in the Singapore region. For instance, if your invoice amount is $27.78 and let’s assume your country’s current GST rate is 8%, then your total invoice will be $30.00, including GST. Cloudways charges a GST rate based on Singapore’s current GST rate, and your invoice will also have subtotal and charged tax listed along with the total, as shown in the image below.
How to Get a GST Exemption?
Singaporean business customers can get GST exemption in future invoices by adding the valid UEN/NRIC/GST Reg# while upgrading the account. You can also provide us with your UEN/NRIC/GST Reg# along with the business name by emailing us at firstname.lastname@example.org. Your future invoices will be exempted from their charge once your UEN/NRIC/GST Reg# is verified on IRAS.
Please be advised that providing us UEN/NRIC/GST Reg# will not update the previously paid invoices; however, all the future invoices will be GST exempted if a valid UEN/NRIC/GST Reg# is submitted.
That’s it! We hope this article was helpful. If you need any help, then feel free to search your query on Cloudways Support Center or contact us via chat (Need a Hand > Send us a Message). Alternatively, you can also create a support ticket.
Can I get a refund of the VAT/GST charge from the previous invoices?
Unfortunately, no reimbursement can be offered against the VAT/GST charge from previously paid invoices as you should supply tax-related information at the time of upgrading the account. However, you can get a VAT exemption if you are an EU business customer with a valid VAT ID and a GST exemption if you are a Singaporean business customer with a valid UEN/NRIC/GST Reg#.
My country is exempted from the VAT, what should I do?
Customers from territories that are exempted from the VAT charge should inform us by sending an email at email@example.com.
My territory’s VAT rate is different than the standard rate of the country, do I still have to pay the same VAT rate?
If you are based in a territory where the VAT rate is different than the standard VAT rate of the country (for example, Azores, Akrotiri, and Dhekelia, etc.), then let us know at firstname.lastname@example.org.