Tax on Dropbox subscriptions

Dropbox is legally obligated to pay sales tax on some customer transactions.

Whether or not tax is due depends on the item purchased and the buyer's location, and the actual tax rate is determined by the applicable state and/or local tax rates. Dropbox uses the billing zip code you added to your account to determine the applicable tax. If you are within a jurisdiction where tax is due you will see the tax as a line item on your billing invoices and receipts.

How do I see how much tax I will be charged if I purchase a Dropbox subscription?

Visit our Business account purchase page or Plus purchase page and enter your account details to see if you would be charged sales tax, and, if so, the applicable tax rate.

Note: You don't need to complete the purchase to see the applicable tax rate.

How do I see how much tax is charged for my existing subscription?

Dropbox Business team admins:

  1. Sign in to dropbox.com.
  2. Open the Admin Console.
  3. Select the Billing page.
  4. Choose Billing history.

Dropbox Plus users:

  1. Sign in to dropbox.com.
  2. Click your avatar.
  3. Click Settings.
  4. Select the Billing history section.

Learn more about invoices and receipts for Dropbox subscriptions.

Does Dropbox offer tax exemptions?

Some non-profit or educational institutions can receive tax exemptions on Dropbox Business subscriptions. Team admins can contact customer support in the Admin Console to see what options are available.

Sections in this article:

Sales tax on Dropbox subscriptions in United States

Currently, Dropbox passes the sales tax on applicable Dropbox Business and Dropbox Plus subscriptions on to customers based in specific locales within the United States. If you are a Dropbox Business team admin or a Dropbox Plus user and have questions about this policy, see below for additional answers. If you have further questions, please contact customer support.

Other info about U.S. sales tax:

  • Taxability and tax rates are generally determined by the location of the buyer and seller, and various state and local tax laws
  • Dropbox has a legal obligation to pay sales tax on transactions with customers in certain jurisdictions, and it is customary for companies to pass this sales tax on to customers. As of May 2015, Dropbox will begin charging sales tax on Dropbox Business and Dropbox Plus subscriptions purchased by customers who are located in these jurisdictions in the US.

VAT on Dropbox subscriptions in the European Economic Area

Dropbox is legally obligated to pay value-added tax (VAT) on customer transactions. We use the country you've added to your account to determine the applicable tax. If you are within a country where tax is due, you will see the subscription amount and the VAT as a line item on your billing invoices and receipts.

Dropbox charges this tax on Dropbox Plus, Business, and Enterprise subscriptions for customers in the European Economic Area (EEA). If you are located in the EEA, and you have an existing subscription for one of these Dropbox products, you will be charged VAT on your next renewal. VAT will be charged on both annual and monthly subscriptions.

Other info about VAT in the European Economic Area:

  • If your business shouldn’t be charged VAT, you can add your VAT ID to your account. With your VAT ID, we can identify the transaction as business-to-business and will not charge VAT. You should be able to reclaim VAT payments from your tax authorities.
  • Dropbox International Unlimited Company's VAT number is IE 9852817J
  • To add a VAT ID to a Dropbox Business account:
  1. Sign in to dropbox.com.
  2. Click the Admin Console.
  3. Click Billing.
  4. Click Payment method.
  5. Click Update. You will then be brought to a screen where you can update your VAT ID.
  • Your VAT ID should be in the VAT identification number format
  • You can also use the reverse charge method to pay VAT on a Dropbox Business subscription. If you add your VAT ID to your Dropbox Business account, we can exclude VAT from your invoice. You can then pay applicable VAT directly to the tax authority in your country.

VAT on Dropbox subscriptions in South Africa

Dropbox is legally obligated to pay value-added tax (VAT) on customer transactions. We use the country you've added to your account to determine the applicable tax. If you are within a country where tax is due, you will see the subscription amount and the VAT as a line item on your billing invoices and receipts.

As of May, 2016, Dropbox charges this tax on Dropbox Plus, Business, and Enterprise subscriptions for customers in South Africa. If you are located in South Africa, and you have an existing subscription for one of these Dropbox products, you will be charged VAT on your next renewal. You will see the charge regardless of whether you have an annual or monthly subscription.

Other info about VAT in South Africa:

  • The VAT rate for Dropbox in South Africa is 14%
  • Dropbox is VAT registered in South Africa, and has a legal obligation to pay VAT on transactions with customers in South Africa

Consumption tax on Dropbox subscriptions in Japan

Dropbox is legally obligated to pay consumption tax on customer transactions. We use the country you've added to your account to determine the applicable consumption tax. If you're in a country where consumption tax is due, you'll see the subscription amount and the consumption tax as line items on your billing invoices and receipts.

As of October, 2015, Dropbox charges this tax on Dropbox Plus and Business subscriptions for customers in Japan.

Other info about consumption tax in Japan:

  • The consumption tax rate for Dropbox Plus and Business is generally determined by the location of the buyer
  • As a registered foreign business, Dropbox has a legal obligation to pay consumption tax on transactions with customers in certain jurisdictions
  • The registered foreign business number for Dropbox is 00018

Goods and services tax on Dropbox subscriptions in New Zealand

Effective October 1, 2016, New Zealand is requiring Foreign Digital Service Providers to apply a 15% goods and services tax (GST) on e-services provided to New Zealand consumers. As a Foreign Digital Service Provider, Dropbox is legally obligated to pay tax on customer transactions in that country.

Dropbox must charge GST regardless of whether you have an annual or monthly subscription. The subscription amount and GST appear as additional line items on your billing invoice or receipt.

Dropbox Plus: If you're a Dropbox Plus user located in New Zealand, you will be charged this tax on your next renewal.

Dropbox Business: If you're a Dropbox Business customer, you aren't subject to GST.

Other info about GST in New Zealand:

  • Dropbox Business customers aren't charged GST—this tax only applies to individual customers in New Zealand (as opposed to businesses). For Dropbox, this means that only customers with Dropbox Plus subscriptions will see GST. It does not apply to subscriptions on a Dropbox Business plan.
  • As of October 1, 2016, the tax rate for Dropbox Plus in New Zealand is 15%
  • As a foreign seller providing electronic services in New Zealand, Dropbox is legally obligated to pay tax on customer transactions
  • GST is not included in the price of a subscription; GST is charged on top of the listed price for your subscription
  • The registered New Zealand GST number for Dropbox is 120-704-311
  • If you have a pending invoice, you can see the GST for an existing Dropbox subscription charge by viewing your billing history on dropbox.com
    1. Sign in to dropbox.com.
    2. Click your avatar.
    3. Click Settings.
    4. Click Account.
    5. Click Billing history.
  • Note: These instructions only work if you have a pending invoice; GST won't be added to past invoices

Learn more about getting Dropbox subscription invoices.

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