In compliance with the tax policies, Arvixe collects Sales Tax (Texas), European Union Value Added Tax (VAT), and Goods and Services Tax (GST) based on your city, state, or country. If you are outside Texas, or European Union (EU), then we are not required to collect tax (e.g., sales tax, use tax, or VAT), but this is subject to change. For more information on whether this applies to you, please see the tax rate chart below.

This article discusses the following topics.

• Value Added Tax (VAT) Policy
• Tax Rates
• Is Tax Included or Not Included in My Purchase?
• Do You Accept Tax-Exempt Numbers?
• Why Do You Collect Sales Tax From the Residents of Texas and Not From Out-of-State Residents?
• External Sources

Value Added Tax (VAT) Policy

Arvixe is required to account for VAT on electronically supplied services provided to EU non-business customers.

We have chosen to register for VAT under the one-stop scheme, a special scheme for non-EU suppliers of electronic services to fulfill our EU VAT obligations. This is in accordance with Article 357 to 369 of the above EC Directive rather than individually registering for VAT in each EU member state.

Under the one-stop scheme, we are required to charge VAT to non-business customers at a rate that applies in the customer's member state. The VAT collected will be paid over to HM Revenue & Customs in the UK. This is where we registered for the one-stop scheme from an administrative perspective.

Tax Rates

*_{In Texas, web hosting is considered a "data processing service," and 20% of the charge is exempt from tax.  The actual amount of tax that is collected is calculated with the appropriate exemptions, where applicable.}

Why Is Tax Included or Not Included With My Purchase?

If you are outside of Texas or India, then we are not required to collect tax (e.g., sales tax or Service Tax) on your account. Please see the tax rate chart above if your country is a part of the EU.

Texas: Any customers with a billing address in Texas will be required to pay a state sales tax on top of the initial invoice. This does affect current customers and will be applied to recurring charges.

India: India now imposes an 18% Service Tax on electronically supplied services sold by foreign entities to customers located in India effective December 1, 2016. As part of our ongoing compliance with India Tax Laws, we will be applying the India Service Tax on all of our products sold to Indian customers. If you are exempt from the India Service Tax, please contact us via Live Chat or submit a ticket to provide your India Goods and Service Identification Number so that we may exempt your purchase on your next invoice. The India Goods and Service Identification Number should be submitted through your client area.

Do You Accept Tax-Exempt Numbers?

Texas: We need the proper documentation proving tax exemption status to be exempt from Texas Sales & Use Tax.

Business Tax Exemption
We will require the appropriate form to be completed and emailed or faxed back to us for verification. Please see the documentation below.

• Texas Sales & Use Tax Resale & Exemption Certificate Forms (PDF)

Non-Profit Organizations
We require a copy of your 501(c)3 certificate via email or fax.

Please contact our Billing department via phone or Live Chat to provide the documents or fax them at (707-324-8333).

India:  To be exempt from the India Service Tax, you need to input your India Goods and Service Identification Number under My Details in the billing account.  

Why Do You Collect Sales Tax From the Residents of Texas and Not From Out-of-State Residents?

According to United States Supreme Court decisions interpreting the U.S. Constitution, A Small Orange is only required to collect taxes for states in which it physically operates. If you are outside of the states or countries listed above, then we are not required to collect tax (Sales tax, Use tax, or VAT) on your account.

External Sources

If you wish to know more about the tax policies, please visit your local taxing authority, government tax office, or your accountant for specific information and advice. Here are some links to the Texas Comptroller of Public Accounts and India's Central Board of Excise and Customs website, which will give you a greater understanding of the law.

Texas

• Internet Orders - Buying and Selling
• Taxable Services (PDF)

India

• Overview of Service Tax
• Taxable Services (PDF)

Please note that support via Live Chat or support ticket is unable to and cannot make any tax/VAT/GST recommendations. For these inquiries, please consult with the recommended parties above (local taxing authority or accountant).