Billing Sales Tax / VAT / GST (Common Questions)

Billing Sales Tax / VAT / GST (Common Questions)

For customers based in the United States

Why am I being charged for Sales Tax?

For customers located within the United States of America, PriceLabs is required to charge and collect taxes on sales in certain jurisdictions, as mandated by local laws. These laws require taxation of our products, and PriceLabs either has a physical presence or has met certain economic thresholds within that jurisdiction, thus mandating this. The sales tax applicable can vary by jurisdiction.

Sales tax will be applicable to all four products - Dynamic Pricing, Market Dashboards, Revenue Estimator Pro, and Listing Optimizer.

Why is sales tax being charged, and what is the sales tax for?

In the past, PriceLabs has not been required to collect these taxes, but we're now required to collect in certain states within the  United States of America.

The sales tax being collected is on your usage of PriceLabs and is not related to the bookings you receive on your listing(s).

What happens to the sales tax collected?

The entire amount charged as sales tax (as indicated by the header "Sales Tax" in your invoice(s)) is remitted to the required local jurisdiction, and no amount from this is retained by PriceLabs.

How is sales tax calculated on my invoice?

The applicable sales tax on an invoice is determined by three factors, namely: a) the services availed by you from PriceLabs, b) the business address provided by you in your PriceLabs account, and c) the tax rates as determined by the applicable jurisdiction where you are located.

You can update your billing address by logging in to your PriceLabs account and navigating to https://app.pricelabs.co/billing?tab=billing_details to update this.

Will my past invoices be affected by this

PriceLabs will not be collecting sales tax retroactively. This means any invoices in the past are exempt from sales tax collection. All invoices that are due on August 1, 2024, or later will be subject to sales tax, based on the applicable jurisdiction.

My listings are split between multiple countries. How will sales tax be applied?

Sales tax is determined based on the billing address specified by you; the location of your listings will not have any impact on the sales tax applicable to an invoice.

What can I use as the billing address?

If you have a registered business entity, you can use its address. If you do not have a registered business entity, you can use either your residence address or the address where your listing is located. To update your billing address, please visit: https://app.pricelabs.co/billing?tab=billing_details 

I have a tax exemption certificate. How can I ensure taxes are not collected on my invoices?

In case you have a tax exemption certificate, request that you send this as an attachment from your registered PriceLabs email address to support@pricelabs.co. We will validate this, and accordingly, sales tax will not be collected on your future invoices. However, it is important to ensure the billing address in your PriceLabs account is up to date.

For customers based in Other Countries

Does PriceLabs currently charge VAT?

PriceLabs is in the process of registering for VAT / GST in certain countries, as required by local tax laws. Once registration is complete, we may be legally required to add VAT or GST to your PriceLabs subscription if a valid business tax ID (VAT / GST ID) is not provided.

Tax will be calculated based on your billing address. You can add or update your billing address by visiting your Billing page https://app.pricelabs.co/billing?tab=billing_details 

Before we start charging VAT, we will notify the email address associated with your account.

Why am I required to add my VAT ID / GST ID / Tax ID?

We ask for your VAT ID, GST ID, or local business tax ID to ensure your invoices are compliant with local tax laws. If you're a registered business in a country where VAT or GST applies, providing a valid tax ID may mean we do not need to charge tax on your subscription (this depends on local rules).

If no valid tax ID is provided, we may be required to add tax to your PriceLabs invoices once tax collection goes live in your country. Having your tax ID with us helps us issue accurate tax invoices, which you may need for your own accounting or to claim input credits, depending on your local tax system.

I do have a valid VAT ID / GST ID / Tax ID – where do I enter it?

If you have a valid VAT ID / GSTID / Tax ID, you can add it by visiting your Billing page: https://app.pricelabs.co/billing?tab=billing_details. 

Will I be charged VAT?

This depends on the country of your billing address, your VAT registration status, and whether you provide a valid VAT ID.

If you provide a valid VAT ID, you will not be charged VAT on your invoices. In such cases, as a B2B customer, you are responsible for self-reporting VAT in your own VAT return under the reverse charge mechanism. If you do not have or provide a valid VAT ID, or if your VAT number is invalid or missing, VAT will be charged on top of your invoice amount, based on your billing address.

We highly recommend that all eligible businesses provide their valid VAT ID to avoid being charged VAT and to ensure accurate and compliant invoicing.

Note:

We are currently in the process of registering for VAT / GST in several countries. VAT /GST will not be charged until the registrations are completed. Before we start charging VAT, we will notify the email address associated with your account.

What is the reverse charge mechanism?

Under the reverse charge mechanism, if you're a VAT-registered business and provide a valid VAT ID, then PriceLabs will not charge VAT on your invoice.

Instead, you must self-account for the VAT in your local VAT returns. Invoices will include your VAT ID, legal business name, and address. Reverse charge may not apply in all countries. Please consult your local tax advisor if you're unsure how this applies to you.

How are VAT numbers validated?

VAT numbers must follow the standard format for your country. If you are unsure of the correct format or validity of your VAT number, you can validate it using:
  1. For UK customers, VAT numbers can be checked against HMRC’s VAT register: https://www.gov.uk/check-uk-vat-number
  2. For EU countries, validation is done via the VIES (VAT Information Exchange System): https://ec.europa.eu/taxation_customs/vies/
  3. For other regions, validation is based on available local databases or format checks, depending on country-specific rules.

If I am not VAT registered, what VAT rate would be applied to my invoice?

The VAT rate depends on the country of your billing address. Rates vary by country and are based on local tax laws. We use Anrok, a tax compliance platform, to automatically apply VAT based on your location. Anrok ensures the correct rates and rules are applied based on the most current local tax regulations.

The VAT amount will appear as a separate line item on your invoice.

Are the prices displayed on the website inclusive of taxes?

No. Prices displayed on our website and invoices are exclusive of VAT.
VAT, if applicable, will be added on top of your subscription fee and shown as a separate line item on your invoice.

Exemptions

PriceLabs manages tax exemptions on a case-by-case basis. Please send your tax exemption request with your valid tax exemption certificate for the state(s) where you are located to support@pricelabs.co.

Number Formats for VAT ID

A detailed list of VAT ID formats, depending on the country, is available here:

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