Taxes for Microsoft 365 admin center purchases that you make through Microsoft are determined by your business address, or, if it's different, by your shipping address. If you are in the United States, you must provide a Federal Employer Identification Number (FEIN).
Businesses in these countries can provide their VAT number:
- Czech Republic
- South Africa
- United Kingdom
These countries can provide their VAT number or local equivalent on their billing account information.
|India||GSTIN (optional), PAN ID (required)|
|Isle of Man||VAT ID (optional)|
|New Zealand||GST Registration number (optional)|
|Monaco||VAT ID (optional)|
|Taiwan||VAT ID (optional)|
If you need to contact support, have your FEIN, VAT number, or local equivalent ready to give to the support agent.
What tax will I be charged?
Find out what tax you're charged in the following regions. You can also apply for tax exempt status by providing the proper documentation to Support.
Europe, the Middle East, and Africa (EMEA)
When you buy Office 365 services in the European Union, this purchase is subject to Value-Added Tax (VAT).
If you're located in a European Union Member State and you do not provide your valid local VAT ID, Microsoft Ireland Operations Ltd. will apply current local VAT rate, based on the billing country your account is set to.
If you're located in Switzerland or Liechtenstein, the current Swiss VAT rate is applied, whether you provide your VAT ID or not.
Generally, if you're located in an EMEA country outside the European Union and Switzerland/Liechtenstein, VAT is not charged by Microsoft Ireland Operations Ltd.
Before we can validate your VAT ID, it must be available for verification in the VAT Information Exchange System (VIES). If your VAT ID cannot be verified, please contact your local tax authority.
You might qualify for VAT zero-rating:
If you're in a European Union Member State outside Ireland: You can provide your valid local VAT ID. This will entitle Microsoft Ireland Operations Ltd. to VAT zero-rate the transaction. However, you may have a local VAT accounting obligation, so please check with your tax advisers if you have any concerns. For instructions, see "Add your VAT ID (EU countries only)" below.
If you're in Ireland and you have relevant valid VAT exemption certification: Microsoft Ireland Operations Ltd. may be entitled to exempt the transaction from VAT. If you don't, Microsoft Ireland Operations Ltd. applies the current Irish VAT rate, whether you provide a VAT ID or not.
Add your VAT ID (EU countries only)
In the admin center, go to the Billing > Products & services page.
Find the subscription card for the subscription you want to update.
In the Settings & Actions section, select Edit service usage address.
On the Edit your service usage address page, enter your VAT ID in the VAT number box, and then select Save.
Add your VAT ID (EU countries only)
In the admin center, go to the Billing > Subscriptions page.
Select the subscription name, and then select More actions > Edit VAT number.
On the Edit your service usage address page, enter your VAT ID in the VAT number box, and then select Submit.
Asia Pacific countries (APAC)
If you're billed by the Microsoft Regional Sales office, "Microsoft Regional Sales" appears on your invoice, and you're usually not charged a consumption or Value-Added Tax (VAT) tax unless it is a domestic sale.
If you're billed from another location, the current local tax is applied. You'll see the following on your invoice:
Singapore to Singapore
Korea to Korea
Japan to Japan
Taiwan to Taiwan
North, Central, and South America
In the United States and Canada, various tax rates apply depending on your location. In Puerto Rico, local Value-Added Tax (VAT) charges apply.
If your billing is done by Microsoft Corporation (see your invoice), and you signed up for Office 365 outside of the United States, Canada, and Puerto Rico, then tax is generally not charged.
How taxes are calculated
Sales taxes are calculated against the unit price, and then aggregated.
(unit price X tax rate) X quantity = total sales tax
($1.29 X 0.095) X 100 = $12.25
Apply for tax-exempt status
If you qualify for tax-exempt status in your market, start a service request to establish tax exempt status for your organization.
Have the following documentation ready:
|Country or locale||Documentation|
|United States||Sales Tax Exemption Certificate|
|Canada||Certificate of Exemption (or equivalent letter of authorization)|
|Ireland||13B/56A Tax Exemption Certificate|
|International organizations that hold tax exemption||Certification / letter confirmation from local tax authorities|
|Puerto Rico||Certificado de Compras Exentas|