The latest version is available at https://helpcenter.mywikis.wiki/wiki/Sales_tax_and_VAT. The below content is not updated and kept for historical reference only.
MyWikis collects sales tax and VAT (the latter is also known as GST) from certain customers as needed in order to comply with regulations worldwide.
Sales tax and VAT collection is determined by where your mailing address is based.
If your address is based in these following places, then we DO collect taxes:
|If your address is in:||then you will pay these taxes:||and your sales tax/VAT rate is:||except for:|
|Texas, United States||Texas Sales & Use Tax||6.6% (see why below)||501(c)(3) nonprofits and any other public institution exempted from taxes by the laws of the State of Texas|
|European Union||VAT (Value Added Tax)||Your country's standard VAT rate||those with VAT numbers|
If your address is based in these following places, then we do NOT collect taxes:
- A state or territory in the United States other than Texas
- Countries of the European Economic Area (EEA) which are not in the European Union
- United Kingdom
- Any other country not mentioned above
More information about each case will be explained below, including why you don't have to pay taxes in most jurisdictions.
Our listed prices always exclude tax, because it is infeasible for us to provide 27 different prices with taxes included. We provide inclusive pricing when required by law. For inclusive rates, you can use our Price Calculator to predict inclusive prices. We use exclusive pricing because (1) we are based in the United States, where this is the norm, (2) our billing system unfortunately does not support both inclusive and exclusive taxing at the same time, and (3) many EU clients have VAT numbers, making them VAT-exempt.
Texas Sales & Use Tax
MyWikis is operated by MyWikis LLC, a limited liability company incorporated in the state of Texas in the United States of America. As a result, state law requires us to collect Texas sales tax for entities based within the state.
Sales tax is for products. MyWikis offers a service. Why are you charging sales tax on a service? Why is the rate 6.6%, isn't that non-standard?
Texas law classifies web hosting as a "data processing service". As a web hosting service, MyWikis is therefore required to charge sales tax on 80% of the purchase price, as Texas regulations state that 20% of the cost of a data processing service is exempt from sales tax. Since MyWikis LLC is incorporated in an area where sales tax is 8.25%, that makes our effective sales tax rate 6.6%. Even if you live in an area with a different rate, Texas requires us to uniformly collect at this rate for all in-state customers.
Texas law exempts advisory consulting from sales tax, so we don't collect any sales tax for purely advisory consulting engagements.
I don't live in Texas/My business is not based in Texas. Do I need to pay Texas sales tax?
No, you are not liable for Texas sales tax. Please truthfully provide your address and our systems will automatically calculate your sales tax rate (which should be 0%). Rest assured, we only use your physical address to determine tax rates, and we'll never use this to send you mail or distribute this information to any third parties.
(For businesses: if your business has nexus in Texas, then you will need to pay sales tax.)
What does having nexus in Texas mean?
(Having nexus in the state of Texas only applies to businesses that use MyWikis.) Simply put, having nexus in Texas is a specific way of saying an entity has enough ties to the state of Texas to be bound by state law, as relating to Texas's business laws. Usually this means you have some form of physical presence in Texas. If you're not sure, you may fill out this questionnaire (AP-114) and submit it to the Texas Comptroller of Public Accounts. They will then give you a definitive response.
Why don't other American customers not based in Texas have to pay sales tax?
Texas sales tax only applies to entities that are based in Texas. Due to the U.S. Constitution's Commerce Clause, the state of Texas's sales tax laws do not apply outside of the state. Furthermore, the state of Texas does not authorize us to collect sales tax on out-of-state customers. As a result, we cannot collect sales tax from customers in other states, which is great news for most customers. However, we must collect sales tax from all customers in Texas, with few exceptions. We apologize for any inconvenience.
The 2018 Supreme Court case South Dakota v. Wayfair decision makes it potentially necessary for MyWikis to collect sales tax for clients in states other than Texas. At the moment, we do not meet the threshold in revenues that makes this necessary for any state outside of Texas. If this changes, we will notify the customers located in that state. MyWikis benefits from the even geographical distribution of our clients across all 50 states, making it possible for us to not collect sales tax in 49 states. We are excited to pass the savings onto you!
Our business has nexus in the state of Texas as determined by the Texas Comptroller of Public Accounts, but we don't have a physical address in Texas. Are we supposed to pay sales tax?
Yes, we will need to make an adjustment in our system to reflect this status for your account. Please open a ticket so we may make the necessary adjustments.
Can I use a non-Texas address to get around the sales tax imposition?
We do not recommend you attempt to dodge our sales tax by providing an address outside of Texas. Knowingly evading sales taxes is a violation of Texas law. Legally, you must pay Texas sales tax if you have nexus in Texas. You should let us know immediately if you have nexus in Texas but your primary address is not within Texas, as you would still be required to pay sales tax to us. If you are unsure, please seek advice from an attorney.
We are a Texas nonprofit entity exempted from sales taxes. Can you exempt sales tax for us?
We would be happy to do so. Please note, we cannot exempt sales tax until the proper exemption procedure has been carried out.
To request an exemption, please fill out and sign Form 01-339, available from this link. Then, send a PDF of the filled and signed form to customer support. Once this is approved, we will remove sales tax from your total costs.
If you previously paid sales tax as an exempted nonprofit entity, we are unable to refund this to you, but you may request a refund from the Comptroller's Office.
Isn't the sales tax rate 6.25%? Or is it 8.25%? Why do you only charge 6.6% sales tax?
As a web hosting service provider, MyWikis is considered a "data processing service" by the state of Texas. 20% of the price collected for data processing services are exempt from sales tax. Therefore the effective sales tax rate is 8.25% x (100% - 20%) = 6.6%.
The location at which MyWikis LLC is based has a sales tax rate of 8.25%. Even if you live in an area with a different rate, Texas requires us to uniformly collect at this rate (not accounting for the 20% exemption, bringing the effective rate to only 6.6%) for all in-state customers.
U.S. Sales & Use Tax (non-Texas)
Why don't you collect sales tax for non-Texas residents?
Despite South Dakota v. Wayfair's ruling, we have no legal obligation from any other state to collect sales or use tax because our revenues in other states do not exceed their thresholds. If this changes for any specific state, we will be sure to notify any customers living in that state and will announce how we will begin to collect sales tax. Please note that taxes will be added on top of your current rate, so the amount you would pay to us per billing cycle would increase.
When did MyWikis begin collecting EU VAT?
Beginning 1 July 2021, MyWikis began collecting VAT from EU customers, but not UK customers or non-EU EEA customers.
Do these policies apply to non-EU EEA countries and/or Switzerland?
No, because those countries have VAT policies independent of the EU.
This answer only applies to taxes. (For instance, we do group the EU with the EEA for SEPA.)
How does Brexit impact EU VAT?
Please note these EU VAT provisions no longer apply to the UK as of 1 January 2021, and that UK-specific information is in the next section below.
How do I provide my VAT number?
You can provide it when you create your wiki/create your account on the Client Panel under the "How did you find us?" field. If you forgot, you can go to your profile details to add it (https://panel.mywikis.net/clientarea.php?action=details).
Our billing system automatically verifies all EU VAT numbers through VIES. If your VAT number is invalid according to VIES, we cannot provide you with a VAT-free purchase.
If you believe you are exempt from VAT, were not provided a VAT exemption by our billing system, and already paid the VAT-inclusive amount, please work with your tax authority on pursuing a VAT refund. MyWikis is not responsible for VAT being mistakenly paid for.
Can I pay VAT in a currency other than the Euro?
Unfortunately not. We are obligated to pay VAT in Euros, even if it was collected for non-Eurozone countries, such as Sweden or Poland.
What is MyWikis' VAT number?
Why doesn't MyWikis collect VAT?
Per UK regulations, companies under a certain threshold of revenue do not need to collect VAT.
Currently, our revenue amount and status as a company outside of the UK means we do not collect VAT from United Kingdom customers at the moment due to current regulations.
We'll inform all UK-based customers of any changes, should they occur.
Is there any way we can be prepared for such a change?
If we begin to collect VAT from UK customers, we will inform all affected customers about appropriate billing changes as soon as we can. If you are a UK-based company, you may choose to provide your VAT number in your profile right now. We won't be using this at the moment, but in the future, we may.
How does Brexit impact the current EU VAT exemption made by MyWikis?
Brexit does impact how we charge VAT against UK customers as opposed to other EU customers. Thankfully, it is a positive change for UK customers. Due to Brexit, UK customers do not pay any VAT even after 1 July 2021. EU VAT rules no longer apply to the United Kingdom. Therefore, we will comply with regulations issued by HM Revenue & Customs.
In 2021, we do not meet the threshold for requiring VAT payments from our UK-based customers. This threshold is unique to the UK, and is not subject to the EU distance selling exemption revocation effective 1 July 2021.
How do I provide my VAT number?
You can provide it when you create your wiki/create your account on the Client Panel. If you forgot, you can go to your profile details to add it (https://panel.mywikis.net/clientarea.php?action=details).
We automatically verify all UK VAT numbers through HMRC. If your VAT number is invalid according to HMRC, we cannot provide you with a VAT-free purchase.
We do not collect GST from Canadian customers at the moment due to our jurisdiction and current regulations. We'll inform all Canadian customers if this changes.
We do not collect GST from Australian customers at the moment due to our revenue and current regulations. We'll inform all Australian customers if this changes.
All other countries
At the moment, we do not have a large enough presence in other countries to be within their taxation jurisdictions.