# VAT or not

VAT might apply in some cases and not apply in other situations depending on the legal setup of your entity.

### For EU-Based Subscribers  


<span style="text-decoration: underline;">**With a VAT Number:**</span>

If you're a business within the EU and have a valid VAT number, we do not charge VAT on your invoices. This is known as a reverse charge mechanism. It's essential that you provide us with your VAT number during the completion of the "instance request" form.

**Example**: A digital agency based in Germany provides their VAT number. Their Cloud68 invoice will be without VAT.

<span style="text-decoration: underline;">**Without a VAT Number:**</span>

Individuals or entities without a VAT number are required to pay VAT at the rate applicable in their country. This includes businesses not registered for VAT and consumers.

Example: A freelancer in Spain without a VAT number requests a Nextcloud instance from Cloud68. The invoice will include Spanish VAT at the current rate.

**VAT RATES:** Check <span style="background-color: rgb(236, 202, 250);">[here](https://www.avalara.com/vatlive/en/vat-rates/european-vat-rates.html)<span style="background-color: rgb(255, 255, 255);"> </span></span>for the VAT rates based on your location.

### For Non-EU Based Subscribers

Subscribers outside the EU are not charged VAT on our services.

**Example**: A startup based in Canada has an active PeerTube instance with Cloud68. They won't be charged VAT in their invoice.