Does Vonage Charge VAT or GST?

Vonage and its subsidiaries are required by certain non-U.S. taxing authorities to collect Value-Added Tax (VAT) or Goods and Services Tax (GST) on sales of its services to customers located in various jurisdictions.  This guide covers Vonage’s responsibilities within certain taxing jurisdictions.

If you are contracted with and billed by:

Vonage Business Inc (VBI) a US Registered Entity:

VBI is required to collect the Canadian, GST (Goods and Services Tax), British Columbia & Quebec Provincial Sales Taxes in Canada, Malaysian Service Tax, and Indonesian VAT from customers located in those regions. 

Vonage Business Limited (VBL) a UK Registered Entity:

VBL is registered to collect UK and Kenya VAT on its sales to customers located in those regions.  All other jurisdictions are outside the scope of VBL’s taxing responsibility but may be the responsibility of the customer to self-assess.

Vonage B.V. (VBV) a Netherlands Registered Entity:

Beginning with invoices dated 1 April 2025, VBV will charge VAT on sales to customers in the following jurisdictions:

• Austria
• Belgium
• Bulgaria
• Croatia
• Republic of Cyprus
• Czech Republic
• Denmark
• Estonia
• Finland
• France
• Germany
• Greece
• Hungary
• Ireland
• Italy
• Latvia
• Lithuania
• Luxembourg
• Malta
• The Netherlands
• Poland
• Portugal
• Romania
• Slovakia
• Slovenia
• Spain
• Sweden
• Liechtenstein - See below
• Switzerland - See below

Vonage Business Mexico, S. de R.L. de C.V. (Mexico)

This Vonage entity is registered to collect and remit Mexican VAT for customers located in Mexico.

Vonage Malaysia Sd. Bdn. (Malaysia)

The Malaysian entity is registered to collect and remit Malaysian Service Tax for customers located in Malaysia.

PT Nexmo International Indonesia

The Indonesian entity is registered to collect and remit Indonesian VAT for customers located in Indonesia.

Nexmo Pte. Ltd. (Singapore)

The Singaporean entity is registered to collect and remit Singapore GST for customers located in Singapore.

Vonage Australia Pty Ltd

The Australian entity is registered to collect and remit Australian GST for customers located in Australia.

Value-Added Tax (VAT) and Goods and Services Tax (GST) Overview

VAT or GST is due when goods and/or services are sold. It applies to most goods and services that are bought and sold for use or consumption in the European Union (EU) as well as other taxing jurisdictions. It is a consumption tax because it is ultimately borne by the final consumer.

Why am I being charged VAT or GST?

Your service address indicates you are established or reside in one of the countries where Vonage is required to collect and remit VAT or GST.   If your service address is not correct, please update your services address by logging into the dashboard or contacting your Account Manager.

How is VAT or GST determined?

VAT or GST is applied based on where the customer has a permanent place of establishment. For individual customers (B2C), the permanent place of establishment is usually the billing/residential address. For business customers (B2B), the permanent place of establishment is usually the business' registered address, or where the business is located. Vonage uses your service address for tax calculation purposes. If your service address is not where your permanent place of establishment is, you can update it in the dashboard or by contacting your Account Manager.

What if I am VAT registered?

Within the EU, Vonage is only required to impose VAT on Business to Customer (B2C) transactions or Business to Business (B2B) transactions if business customers DO NOT provide a VIES Valid VAT number (defined below). If you are a business customer established in an EU Member State (other than the Netherlands) and are VAT registered, please provide a valid, VIES verifiable VAT Identification Number and Vonage will be able to apply the ‘reverse charge mechanism’.  As a business customer, you will be responsible to self-assess and report VAT to the tax authorities in your EU Member State of establishment according to the local rules and regulations.  

Please note, in the EU, the VAT number you provide must be registered in the VIES database to be considered as valid. Vonage will use the VIES database (VAT Information Exchange System - an official database for checking the validity of VAT identification numbers issued by EU Member States) to validate VAT numbers supplied through the Vonage dashboard.  In some EU Member States, the inclusion of a VAT number on the VIES database is not automatic. As such, you may need to apply to your relevant tax authority for your VAT number to be included in the VIES database.

Switzerland and Liechtenstein 

Vonage is required to charge VAT on its sales to all customers located in Switzerland and Liechtenstein irrespective of the business vs non-business customer designation.

Canada

VBI, as a non-resident entity, is required to collect and remit GST/HST on sales to  certain customers located in Canada. Non-resident entities are only required to apply GST/HST on B2C transactions and B2B, business transactions without a valid GST/HST number.  If a valid GST/HST registration number is provided, VBI will not charge GST/HST on your sale to you.  If a valid GST/HST number is NOT provided, the B2B customer will charge GST/HST on your invoice.

If you are a customer located in Quebec, VBI will not apply the Quebec Sales Tax (QST) on your invoice if you are a business customer and provide a valid QST number.  QST will be charged if a valid QST number is not provided. 

If you are a customer located in the province of British Columbia, VBI will apply the Provincial Sales Tax (PST) on your invoice.

It is important to note that any Canadian tax charged by Vonage is not available for the input credit. 

What is the European Union Reverse Charge Mechanism?

Vonage is not required to charge VAT on its sales to business customers established in an EU Member State other than the Netherlands if the customer is VAT registered and the validity of the VAT number can be verified via VIES. As a business, you may still be responsible for self-assessing and reporting the self-assessed VAT in the country of your establishment via your VAT return.  

If the ‘reverse charge’ mechanism should be applied by Vonage, the customer will see the “Reverse Charge” statement displayed on their invoice.  The reverse charge mechanism shifts the responsibility for accounting and reporting the VAT to the tax authorities from Vonage to you as a business customer.

Which VAT rate applies?

Vonage will charge the VAT rate applicable based on where the customer is located. This is based on the service address location provided by the customer. It is your responsibility as a customer to ensure that your service address is accurate.

How do I enter my VAT number and service address?

You can enter your service address and VAT number in the dashboard or by contacting your Account Manager. The specific field may be called Business Tax ID or VAT number, depending on the country selected.

For more details, see How do I Update my Billing Settings.

I entered a VAT number in my dashboard. Why am I getting charged VAT?

Please validate your VAT number at a site like VIES for EU VAT Numbers, or your VAT registration documentation. Additionally, please ensure your VAT number has been inputted following the correct standard format for your country.  

What if I have a VIES valid VAT ID and forget to enter it?

The VAT number can be entered at any time. If a valid EU VAT ID number is entered by you before the next invoice, Vonage will not charge VAT on the next invoice or future invoices issued to you. If no VAT number is entered at or prior to the next invoice being issued, Vonage will charge VAT on your invoice until a valid VAT number (as shown on the VIES database) is entered.

If a valid VAT number is entered and VAT has previously been charged on the invoices issued to you, then upon your request, Vonage may issue a credit note for any VAT included on invoices issued in the thirty days prior to a valid VAT number being provided. However, VAT will not be credited on any invoices issued outside of this thirty-day period.

What happens if I do not have a VAT ID?

If a customer is unable to supply a valid EU VAT number (as shown on the VIES database for EU customers) Vonage will charge and collect VAT on its supplies to you.

What if I am a Reseller?

If you are a reseller or tax exempt see more information here.

Whose responsibility is it to provide the correct information?

The customer is responsible for providing their complete name, service address and VAT/Tax ID number so Vonage can assess the correct tax.  In cases where an address change is necessary, the customer is responsible for updating their address in the dashboard or contacting their Account Manager so the correct taxes are assessed.