Does GoDaddy include VAT?

When registering a domain name or purchasing other products and services from GoDaddy, one key question for many customers is whether prices include VAT (value added tax). The short answer is yes, GoDaddy does include VAT in their listed prices for most countries.

What is VAT?

VAT is a consumption tax that is placed on a product or service whenever value is added at each stage of the supply chain, from production to point of sale. The amount of VAT that the end consumer pays represents the tax charged across the entire supply chain.

The standard VAT rate varies by country, ranging from 15-27% in most cases. Some countries have additional reduced VAT rates that apply to certain goods and services like basic food and medicines.

VAT is similar to sales tax in the United States – it gets added to the price at the point of purchase. But there are some key differences:

• VAT is calculated at every stage of production, whereas sales tax is only charged on the final sale.
• VAT is always included in the listed price, while sales tax is added at checkout.
• VAT rates tend to be higher than sales tax rates.

Businesses are required to collect VAT from customers and remit it to the government. The vendor can deduct VAT they’ve paid on business expenses before sending the remainder to the tax authority.

Does GoDaddy include VAT in their prices?

For the majority of their products and services, GoDaddy does include VAT in the listed prices when billing customers in Europe and other countries that charge VAT.

This means the price you see displayed for a domain registration, web hosting plan, or other GoDaddy product already has the applicable VAT rate factored into it. You don’t have to calculate and add VAT on top of the listed price at checkout.

GoDaddy outlines their VAT policies on their website. Here are some key details on how VAT is handled:

• Customers in the European Union are charged the VAT rate for their specific country. Rates range from 17-27% depending on the country.
• For customers in other countries where VAT applies, such as Norway and South Africa, local VAT rates are also included.
• No VAT is charged for customers billing from countries that don’t have a VAT system, like the United States.

One exception is for business customers in Europe who provide a valid VAT ID number. For those transactions, VAT is not included in listed pricing since the business can recover the VAT charged to them.

GoDaddy’s VAT registration

GoDaddy is registered for VAT purposes in all EU countries. Their main registration is in Ireland, VAT number IE3289061GH.

Being VAT registered means GoDaddy can charge VAT on sales to EU residents and remit those VAT amounts collected to the appropriate tax authorities.

GoDaddy’s Irish VAT registration allows them to operate under the EU VAT rules for digital services provided across borders. So even though their headquarters are in the United States, they comply with European regulations.

Sample GoDaddy pricing

To demonstrate how VAT is included, here are some sample GoDaddy prices for a customer located in Germany:

For each product, the listed price has the 19% German VAT rate factored in. No additional VAT calculation is needed at checkout.

VAT invoices

While VAT is included in GoDaddy’s pricing, they do not provide VAT invoices by default with purchases.

A VAT invoice includes details like the VAT registration number and breakdown of tax charged that may be required for reclaiming VAT in certain business scenarios.

Customers that need a proper VAT invoice from GoDaddy must contact their support team after completing a purchase to request an invoice that meets VAT regulations.

Reclaiming VAT as a business customer

If you have a registered business in the EU and provide a valid VAT ID, GoDaddy will remove the VAT element from pricing and you pay only the ex. VAT amounts.

As a VAT registered business, you can then reclaim the VAT paid on eligible purchases as part of your regular tax filings.

To receive ex. VAT pricing from GoDaddy, you will need to provide your VAT ID when signing up for an account or checking out. Business accounts with a VAT ID on file will automatically get ex. VAT pricing.

GoDaddy does have thresholds on requiring a VAT ID. If your total spending is less than these thresholds, which vary by country, VAT may still be charged even with a VAT ID:

• Germany – €17,500 threshold
• UK – £85,000 threshold
• France – €10,000 threshold

Check GoDaddy’s website for the latest business account VAT policies if you will be making purchases as a VAT registered business.

VAT for non-EU customers

If you are a business located outside of the EU and travel to Europe or purchase services from EU companies, you may be able to reclaim the VAT paid on those transactions.

Each EU country has its own process, but generally you will need to provide:

• Valid receipts showing VAT paid
• Proof that you do not reside in the EU
• Completed claim forms

The UK, Germany, France, and Spain all allow VAT refunds under certain conditions for foreign business visitors or companies. Consult an advisor to understand the reclaim requirements before your trip if you will be incurring VAT expenses.

Summary of GoDaddy’s VAT policies

In summary, here are some key things to keep in mind regarding VAT and GoDaddy:

• GoDaddy includes VAT in listed prices for most countries where it applies.
• No extra VAT calculation is needed at checkout.
• GoDaddy is VAT registered across the EU.
• Customers must request VAT invoices if needed.
• EU business customers can provide a VAT ID for ex. VAT pricing.
• Non-EU companies may be able to reclaim EU VAT paid in certain circumstances.

Understanding how VAT is handled is an important part of budgeting accurately for your domain registrations, hosting, and other website expenses when using GoDaddy internationally.

Conclusion

GoDaddy includes value added tax (VAT) in the upfront pricing displayed to customers for most countries where it is required. This means buyers do not have to manually calculate VAT on top of listed prices at checkout.

GoDaddy is registered for VAT in all EU countries so they can charge the appropriate VAT rates based on the customer’s location and comply with regulations for selling digital services internationally.

For EU business customers who provide a valid VAT ID, GoDaddy will remove VAT from pricing. These buyers can then recover the VAT amount separately as part of their tax filings.

Understanding GoDaddy’s VAT policies, rates, and registration details allows both individual and business customers to accurately budget for domain and hosting purchases.