A common question we receive from our US customers concerns the tax implications of using our services. Our invoices to customers in the United States do not include VAT. Here’s how it works and what it means for you.
Why is there no VAT on our invoices?
FourteenRockets is based in the Netherlands, where businesses charge VAT (value added tax) on goods and services sold to other businesses. However, when a service is provided from the Netherlands to a customer outside the European Union, the Dutch tax office treats it as an export. VAT does not apply, so we issue our invoices to US customers without it.
Does your state charge tax on hosting?
Taxes in the United States are mostly a matter for the individual states, in the form of sales tax and use tax. Goods are taxed in every state. Services, including digital services such as web hosting, are taxed in some states and not in others.
Get professional advice
If your state charges sales tax on hosting and you buy from a supplier abroad, nobody will collect it for you. In this case, you may need to report the purchase yourself and pay the use tax directly to your state’s tax authority. Consult your accountant or contact your state’s tax office if you are unsure whether this applies to you.
Keep your invoices with your records. They show that no VAT was charged. This is the first thing a tax authority will ask about if a question ever comes up.
We are a hosting provider, not a tax adviser. If you have questions related to purchasing services from the European Union, ask your accountant. If you have a question about one of our invoices, please email us at hello@fourteenrockets.com.
