Customers may see the following note on their Twilio invoice:
This invoice is subject to the reverse charge mechanism, if applicable.
This guide covers what the reverse charge mechanism is, and how it applies to your Twilio project.
What is the reverse charge mechanism?
A non-resident entity like Twilio US is not required to impose Value-Added Taxes (VAT) on Business-to-Business (B2B) consumers that are VAT registered. That said, the B2B consumer is still responsible for reporting VAT. This is done through the reverse charge mechanism.
The reverse charge mechanism shifts the responsibility of accounting for VAT on these purchases to the B2B consumer. In other words, these customers must report the applicable VAT on their own VAT return.
Reverse Charge for Twilio Inc customers in Europe
If you are contracted with Twilio Inc (default), and are in the European Union, United Kingdom, or Norway, you can refer to this explanation for the reverse charge mechanism:
For other details on VAT in Europe, see Does Twilio Charge VAT.
Reverse Charge for Twilio Ireland customers in Europe
If you are a customer contracted with Twilio Ireland, and consume Twilio services outside Ireland, the same EU VAT explanation for the reverse charge mechanism applies: Reverse charge on EU VAT (Avalara VATlive).
Notice: If your service address is in Ireland, you will not be subject to reverse charge mechanism.
Reverse Charge for Twilio Inc customers in Australia
If you consume Twilio services in Australia, the same EU VAT explanation for the reverse charge mechanism also applies to Australian Goods and Services Taxes (GST): Reverse charge on EU VAT (Avalara VATlive).
- For more Australia-specific details on GST, please see Reverse charge of GST on things purchased from offshore (Australian Taxation Office).
- For Twilio-specific details on GST in Australia, see Does Twilio Inc. (US Entity) Charge Goods and Services Tax (GST) in Australia.
Other questions on Taxes?
For all other questions on how Twilio is required to tax its services, please see the Taxes section of our Support Help Center.