Does Twilio Charge VAT?

Nonresident entities, such as Twilo are now required by certain foreign taxing authorities to collect Value-Added Tax (VAT) on its sales of its services to customers located in these jurisdictions.

Notice: If you consume Twilio services within the United States, you may be subject to State and Local Sales Taxes.

Value-Added Tax (VAT)

Starting July 1st, 2019, Twilio will begin collecting Value-Added Tax (VAT) on the services sold to its international customers located in certain foreign jurisdictions.

Who will be charged VAT?

Any international customer with a business/service address in the list of countries provided below:

  • Austria
  • Belgium
  • Bulgaria
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Germany
  • Greece
  • Hungary
  • Ireland
  • Italy
  • Latvia
  • Lithuania
  • Luxembourg
  • Malta
  • Netherlands
  • Poland
  • Portugal
  • Romania
  • Slovakia
  • Slovenia
  • Spain
  • Sweden
  • United Kingdom
  • Liechtenstein
  • Monaco
  • Norway
  • Switzerland

How is VAT determined?

VAT is applied based on where the customer consumes Twilio’s products and services. Tax rates will be consistent with what the customers currently pay for relevant goods and services in their country or jurisdiction. The services provided are under the categories of Electronically Supplied Services & Telecommunications. Twilio uses the billing address that you have provided to us as your service address for tax calculation purposes. If your billing address is not where you consume Twilio’s products, you can update your service address in Twilio Console.

How can I be Tax Exempt for VAT?

Twilio is only required to impose VAT on Business to Customer (“B2C”) transactions. Business to Business (“B2B”) customers are tax exempt with a valid VAT number. B2B transactions are subject to self-assessment (reverse charge).

Notice: For customers located in Switzerland, Lichtenstein, and Ireland customers contracted with Twilio Ireland, we are required to apply VAT for both B2B and B2C customers.

If you are a VAT registered B2B customer, please add your VAT number in Twilio Console to be issued a valid tax invoice and for self-assessment (reverse charge) before the current month’s usage to prevent taxation.

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