How does international tax exemption work?

93rodrigo93rodrigo
edited September 2017 in Purchasing

Hi there,

I'm in the process of adding a new credit card to renew my subscription, and when I select my country (Portugal), I get a text box right below that saying "23% VAT will be applied" and a new input field asking for a "Tax number (optional)".
I'm not sure if I should interpret this "Tax number" as my Portuguese NIF (Numero de Identificação Fiscal, or "Fiscal Identification Number" in English), which is what everyone in this country uses for tax purposes.
The reason I want make sure is that as soon as I type that NIF, the text box changes to "Exempt from 23% VAT" immediately (check attached screenshot - https://us.v-cdn.net/5020219/uploads/editor/2l/g6xl1753pihz.png). I've never come across any service in my country or on international shopping where I become exempt from VAT just by providing my NIF, so I would like to confer with you before I do anything else.

Thanks for your time and feel free to ask any probing questions if need be.

Regards,
93rodrigo


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Comments

  • FrankFrank

    Team Member

    Hi @93rodrigo - Thank you for reaching out to us. Yes, the Tax ID field is for customers that are tax except. This typically pertains to businesses. VAT is applicable based on the country and province, so yes you will pay the exchange rate and local tax based on credit card address. We do have to abide by the laws and regulations which is why VAT is collected depending on the country you enter under billing. Sorry this is fairly new to us as well. As of January 1st 2015 we were required to put this in place. If you're exempt from paying VAT you should be able to add the Tax ID to the field and you will be except from being charged VAT. I hope this helped a bit and let us know if you have any additional questions.

  • BenBen AWS Team

    Team Member

    Just to add -- you should only fill in the tax number field if you are tax exempt and can prove that exemption. Otherwise the box should be left blank.

    Ben

  • Hi @Frank and @Ben,

    Thanks a lot for the clarification, fully understood. I'll leave that Tax ID box blank since I'm just a regular consumer.

    Regards,
    93rodrigo

  • BenBen AWS Team

    Team Member

    Very good. Thanks! :)

    Ben

  • Where do I find the VAT field?
    It does not show in Billing Settings...

  • BenBen AWS Team

    Team Member

    Hi @jesperfryd

    Please reach out to our sales team directly at [email protected] for assistance with this. :)

    Ben

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