The EU has standard rules on VAT but they are applied differently in each country in the EU<\/a>. VAT must normally be paid on all goods and services, up to and including the sale to the final consumer. This can also include each stage of a production process from buying components, assembly, and shipping to the final sale.<\/p>\n\n\n\n At UpCloud, VAT is paid when adding balance to your account according to the rules of your country. The taxation percentage will depend on your country<\/a> of residence. VAT does not apply to users from outside the EU.<\/p>\n\n\n\n The value-added tax is chargeable on most sales and purchases within the European Union for EU-based companies. The tax is collected fractionally through the production of goods and services via a system of partial payments by each party adding value to the final product.<\/p>\n\n\n\n VAT-registered businesses deduct the amount of tax they have paid to other businesses on purchases for their business activities from the VAT they collect. This taxation process can be simplified by excluding VAT from sales to other EU businesses.<\/p>\n\n\n\n If you sell products or services in the EU and are registered for VAT, you can have VAT excluded from your payments. Businesses that register a VAT identification number on their UpCloud account will receive zero-rate VAT. They are then responsible for paying VAT in their own country through reverse charges.<\/p>\n\n\n\n If your business has registered for VAT, you are eligible for VAT-free purchases. You can add your valid VAT identification number to your UpCloud account billing details to exclude VAT in the payments.<\/p>\n\n\n\n Note that UpCloud is registered as a Finnish company and sales from Finnish to Finnish company is considered domestic sales. In domestic sales, VAT is charged according to Finnish laws<\/a>.<\/p>\n\n\n\n![\"\"](\"https:\/\/upcloud.com\/media\/manual-payment-20-vat-1024x552.png\")
<\/figure>\n\n\n\n![\"\"](\"https:\/\/upcloud.com\/media\/Upcloud-cta-2-6.jpg\")
<\/a><\/figure>\n\n\n\nEU businesses and VAT<\/h2>\n\n\n\n
Adding your VAT identification number<\/h2>\n\n\n\n
![\"Enter](\"https:\/\/upcloud.com\/media\/billing-vat-number.png\")
<\/figure>\n\n\n\n![\"\"](\"https:\/\/upcloud.com\/media\/manual-payment-0-vat-1024x553.png\")
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