What is VAT?

Value Added Tax, (“VAT”) is generally due when taxable goods and/or services are sold, and the place of supply is the United Kingdom.  VAT generally applies to all goods and services within the scope of the United Kingdom’s VAT legislation that are bought and sold for use or consumption in United Kingdom.  VAT is a Consumption Tax because it is borne ultimately by the final consumer.

Who must pay VAT?

Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer.  Subsequently, the supplier reports and remits the collected VAT to the tax authorities. 

Why am I being charged VAT?

Freshworks has registered for VAT in the United Kingdom and is now required to collect United Kingdom VAT on supplies made to customers in United Kingdom.

How is Freshworks determining which customers United Kingdom VAT applies to?

Freshworks will apply VAT based on the VAT rules for a non-resident supplier providing electronically supplied services to customers in United Kingdom.

It is your responsibility as a customer to ensure that your bill-to/ship-to address is correct.

Will VAT apply even if a United Kingdom company provides a valid VAT number to Freshworks?

VAT applies to all the products/ services that Freshworks makes to customers in United Kingdom.

Please note that if you are a UK established business, then we do not need to charge UK VAT on our invoice to you if you can provide a valid UK VAT number that is associated to your business.

Are there any VAT obligations for me as a customer?

Please consult your tax advisor.