Why am I seeing VAT on my Dropbox subscription?

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're in a country where tax is due, you'll see the subscription amount as a line item on your billing invoices and receipts, along with the VAT.

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.

Read on for answers to some frequently asked questions about VAT. If you have further questions, contact our support team.

What is the VAT rate for Dropbox paid subscriptions?

The tax rate for Dropbox in South Africa is 14%.

How can I know if I’ll be charged VAT for my subscription?

Visit our Dropbox Business or Dropbox Plus purchase pages and enter your account details. If tax applies to your subscription, you'll see the applicable tax rate. You won't need to complete the purchase to see the tax rate.

Why is Dropbox charging VAT for paid subscriptions?

Dropbox is VAT registered in South Africa, and has a legal obligation to pay VAT on transactions with customers in South Africa.

Where can I see the VAT charge for my existing Dropbox subscription?

You can see the VAT charge by viewing your account billing history on dropbox.com.

Dropbox Business team admins:

  1. Sign in to dropbox.com.
  2. Click Admin Console.
  3. Click Account.
  4. Click Billing history.

Dropbox Plus users:

  1. Sign in to dropbox.com.
  2. Click your name at the top of the screen.
  3. Click Settings.
  4. Click Account.
  5. Click Billing history.

Learn more about obtaining Dropbox subscription invoices.

Does Dropbox offer tax exemptions?

If you represent a tax exempt enterprise, contact our support team to provide proof of your tax exempt status and learn whether you're eligible for tax exemption.

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