To comply with tax regulations, Kinsta charges sales tax, VAT, or GST as required for customers located in certain locations.
Please note that this article does not constitute legal, tax-related, or other professional advice.
If you have questions about adding your VAT or GSTIN identification to our system, please contact our Support team at any time. If you have further questions, please contact your accountant, legal advisor, or local tax authority.
Locations Subject to Tax
- US Sales tax is applied to your invoice if you reside in, or your company is registered in the following states: Connecticut, the District of Columbia (DC), Ohio, or Texas.
- EU and UK VAT is applied if you are an EU or UK resident or your company is registered in the EU or UK.
- Indian GST is applied if you are a resident of India or if your company is registered in India.
Refunds From Past Invoices
Unfortunately, we cannot refund sales tax, VAT, or GST collected prior to having exemption or zero-rate documentation on file.
US Sales Tax
To comply with US tax regulations, Kinsta adds sales tax to invoices for customers located in some states in the United States. In this section, we’ll explain which states are affected and how this may impact you.
Sales tax is a consumption tax imposed by the government on the sale of goods and services. Sales tax is governed by states and may also be charged by local municipalities, so the percentage may vary from one city and state to the next. You can read more about sales tax at usa.gov.
States Affected By US Sales Tax
Sales tax is calculated and applied based on the location where services are performed. We determine where our services are being used by looking at the address you provide when you sign up. You can review and update this address in MyKinsta.
Sales tax will be applied to the invoices of customers utilizing our services in any of the following states:
- The District of Columbia (DC)
Additional states will be added to this list over time. When it is determined that Kinsta will need to collect sales tax in an additional state, we will provide an update to affected customers prior to the implementation of the change.
How Does This Affect Me?
If you are a US resident or your company is registered in the US, we are obliged to apply sales tax to your purchases if you are located in a state that requires it (see list above).
For example, at the time of writing, the sales tax rate in Texas is 6.25%. If you purchase a Managed WordPress Pro plan (list price of $70 at the time of writing), your checkout total will be $74.38. This consists of the $70 list price and a 6.25% tax which is $4.38. These items are shown separately on the checkout page and in your invoices and are added automatically based on the state you are located in.
Sales Tax Exemption
Under certain circumstances, you or your company might be eligible for sales tax exemption. Sales tax exemptions are handled on a state-by-state basis. If your organization is exempt from sales tax, please reach out to our Billing team and provide a copy of your tax exemption certificate.
For more info regarding tax exemptions, check with your state’s Department of Revenue.
Will Sales Tax Be Refunded from Past Invoices?
Unfortunately not. You are responsible for providing us with a copy of your tax exemption certificate. We cannot refund sales tax collected prior to having this on file.
VAT (Value-Added Tax)
In order to comply with tax regulations, Kinsta charges VAT (Value-Added Tax) to EU and UK residents and to EU and UK-based companies. This section contains some basic information about VAT and how it affects you as a Kinsta customer. If you’d just like to enter your VAT number, skip to this section on how to add your VAT number.
VAT is a form of tax that you must pay after the purchase of most goods or services in the EU or UK. This includes digital services such as hosting. VAT is a percentage of the price that is added to each invoice. The VAT rate is defined by each country. Depending on which country you reside in or your company is registered in, the VAT rate will be different.
Data is published on the specific VAT rates regularly. Note that each country can set multiple VAT rates. Our services fall under the standard rate. To view specific rates, see your governing body’s official page:
How Does This Affect Me?
This information is only important to you if you are an EU or UK resident or if your company is registered in the EU or UK.
If you are an EU or UK resident, or your company is registered in the EU or UK, we are generally obliged to apply VAT to your purchases. For example: at the time of writing, the standard VAT rate in Spain is 21%. If you purchase a Business 1 plan (list price of $115 at the time of writing), your checkout total will be $139.15. This consists of the $115 list price and a 21% tax which is $24.15. These items are shown separately on the checkout page and in your invoices. The VAT rate we must apply depends on your selected country.
If you provide a valid VAT Number, we are allowed — under applicable tax rules — to zero rate VAT. This means that we will charge 0% VAT. If you have a VAT number, you should add it during registration or in MyKinsta (Company settings > Billing Details) to make sure you are not charged VAT is not charged to you. As a VAT-registered business, you will still be responsible for VAT under the reverse charge mechanism of your country.
Why Does Kinsta, a US Company, Collect VAT?
In most cases, a company is only responsible for tax liability in a given country if it has a permanent establishment in that country. However, in the case of VAT, that is not true. Companies are required to collect and remit VAT, even if they have no permanent establishment in the EU or UK.
For EU VAT, according to the International Trade Administration at the U.S. Department of Commerce:
Non-EU providers of electronic goods and services are now required to register with a tax authority in the member state of their choosing and to collect and remit value-added tax (VAT) at the VAT rate of the member state in which their customer is located.
For UK VAT, according to the UK Government, any business making supplies of digital services to UK consumers must collect and remit UK VAT.
In other words, even though Kinsta is a US company, we are required to collect and remit VAT.
Zero Rate VAT
If you enter a valid VAT Number in MyKinsta, we are allowed — under applicable tax rules — to set a zero rate VAT. This means that we will charge 0% VAT. If you have a VAT number, you should add it in MyKinsta to make sure VAT is not charged to you. As a VAT-registered business, you will still be responsible for VAT under the reverse charge mechanism of your country.
Obtain a VAT Number
Regulations are different from country to country. Businesses may apply for a VAT number at any time. Businesses that meet a minimum threshold of income are obligated to apply for one.
Note that many European countries may issue national (non-EU) tax numbers or other tax identification numbers. These are not EU VAT numbers and can not be used to reduce the amount of VAT to be paid.
Add a VAT Number
In this section, we’ll explain how to add your VAT number at signup or via MyKinsta at any time after you have registered with us.
Adding a VAT Number During Signup
During signup, you can add your VAT Number in the Tax ID field.
Paste your VAT Number into the field. Note that this can take on many formats as each member state determines its own format. See the relevant format guide for more information:
- EU VAT Numbers start with the issuing country’s two-letter code. See the EU VAT Number Format Guide for more information.
- UK VAT Numbers are 9 or 12 numbers, sometimes with ‘GB’ at the start, like 123456789 or GB123456789.
When you click out of the field or submit the form, your VAT Number will be validated using the appropriate system (VIES for the EU, HMRC for the UK). Your VAT Number will only be accepted if its format is valid and active in the applicable system. Once you have entered a valid VAT Number, the VAT and total amount will be adjusted – you will not be charged VAT.
Adding a VAT Number in MyKinsta
If you did not have a VAT Number at the time of signup, you can add it at any time. In MyKinsta, go to Company settings and click on Billing Details tab in the left sidebar. Enter your VAT ID in the VAT number field and Save your changes. It will be checked by the VIES system and saved in MyKinsta. If your number is invalid, we will let you know.
If I Am Currently Being Charged VAT, Can I Add My VAT Number?
Yes! Our system will check your VAT number at the time of invoice generation. If you are a company and you have a valid VAT number added to MyKinsta, we will not add VAT to your invoice. This means that if you are currently being charged VAT, you may add a number at any time. This will not modify invoices that you have already paid, but as long as your VAT Number is valid, we will not charge VAT for subsequent invoices.
Will VAT Be Refunded From Past Invoices?
Unfortunately not. Being in possession of a VAT Number is not sufficient to fulfill the tax authorities’ data requirements. You must be in possession of a VAT Number, and you must supply it at the time of purchase. This means that we can not refund the VAT from past invoices.
Indian GST (Goods and Services Tax)
In order to comply with tax regulations, Kinsta collects Indian GST (Goods and Services Tax) from certain customers in India. This section briefly explains what Indian GST is and how it affects you as a Kinsta customer. If you’d just like to enter your Goods and Services Tax Identification Number (GSTIN) number, take a look at the section on how to add your GSTIN number.
GST is an indirect tax charged on most goods and services in India. Kinsta’s hosting service falls under India’s GST category of Online Information Database Access and Retrieval services (OIDAR) to customers in India.
Who Is Affected by Indian GST?
This article is only important to you if you are a resident of India or if your company is registered in India.
Why Does Kinsta, a US Company, Collect Indian GST?
Even though Kinsta is located outside of India, India’s GST laws apply to our provision of Online Information Database Access and Retrieval services (OIDAR) to customers in India.
If you add a valid GST Number in MyKinsta from the same state shown in your billing address, you will not be charged GST. You will still be responsible for reporting and paying GST on our services under the reverse charge mechanism in India.
Obtain a GSTIN
Add a GSTIN
There are two options available for you to add your details.
Let’s take a look!
Add a GSTIN During Signup
During signup, you can add your GSTIN in the Tax ID field. Paste your GSTIN into the field provided. GST Numbers are 15 characters, alpha-numeric, and begin with the 2-digit state code.
To be considered valid, the GSTIN must be from the same state shown in your billing address. When you click out of the field or submit the form, your GSTIN will be validated and will only be accepted if its format is valid and active.
Once you have entered a valid GSTIN, the GST and total amount will be adjusted – you will not be charged GST. Rather, you will be responsible for reporting and paying GST on our services under the reverse charge mechanism in India.
Add a GSTIN in MyKinsta
You may add your GSTIN at any time in MyKinsta.
Go to Company settings and click on the Billing Details tab. Enter your number in the GSTIN field and Save your changes. It will be checked and saved in MyKinsta. If your number is invalid, we will let you know.
GST Charge After GSTIN Added
If you’ve already added your GSTIN but your upcoming invoice still shows a GST charge, check the following:
- Make sure the GSTIN is from the same state shown in your billing address.
- Verify your number on the GST portal and make sure it is valid.
Will GST Be Refunded From Past Invoices?
Unfortunately not. You must supply your GSTIN at the time of purchase to be exempted from the tax. This means that once we have collected GST on an invoice, we can not refund the GST from that invoice.