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Microsoft 365 tax information

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  • 3 minutes to read

When you buy Microsoft 365 products and services, the taxes that you pay are determined by one of two things: your business address, or your shipping address, if it's different. If your organization is in the United States, you must provide a Federal Employer Identification Number (FEIN).

Businesses in the following countries or regions can provide their VAT number or local equivalent:

  • Armenia
  • Australia
  • Austria
  • Bahamas
  • Bangladesh
  • Belarus
  • Belgium
  • Brazil*
  • Bulgaria
  • Chile
  • Colombia
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Germany
  • Greece
  • Hungary
  • India*
  • Indonesia
  • Ireland
  • Isle of Man
  • Italy
  • Korea
  • Latvia
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Malaysia
  • Malta
  • Mexico
  • Monaco
  • Netherlands
  • New Zealand
  • Norway
  • Poland
  • Portugal
  • Romania
  • Saudi Arabia
  • Slovakia
  • Slovenia
  • South Africa
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • United Arab Emirates
  • United Kingdom

*For most of the countries or regions listed, providing a VAT number or local equivalent is optional. For Brazil and India, the tax identifier number is required.

Note

If you need to contact support, have your FEIN, VAT number, or local equivalent ready to give to the support agent.

Europe, the Middle East, and Africa (EMEA)

When you buy Microsoft 365 services in the EMEA region, this purchase could be subject to Value-Added Tax (VAT).

  • If you're located in a European Union Member State, Armenia, Belarus, Norway, Turkey, or United Arab Emirates, and you don't provide your valid local VAT ID, Microsoft Ireland Operations Ltd. will apply the current local VAT rate, based on the billing country or region your account is set to.

  • If you're located in Liechtenstein, Russia, Serbia, South Africa, or Switzerland, the VAT is applied, whether you provide your VAT ID or not.

  • For EU customers, before we can validate your VAT ID, it must be available for verification in the VAT Information Exchange System (VIES). If your VAT ID can't be verified, 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 lets Microsoft Ireland Operations Ltd. to VAT zero-rate the transaction. However, you might have a local VAT accounting obligation. If you have any concerns, check with your tax advisors. For instructions, see Add your VAT ID.

  • You're in Ireland and have the 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.

  • You're in Armenia, Belarus, Norway, Turkey, or United Arab Emirates: You can provide your local VAT ID. This entitles 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 advisors if you have any concerns. For instructions, see Add your VAT ID.

Asia Pacific countries (APAC)

If you're billed by the Microsoft Regional Sales office, "Microsoft Regional Sales Pte. Ltd." appears on your invoice, and you might be charged for any applicable value-added, sales, or similar taxes.

If you're billed from one of the following locations, the current local tax is applied. The location is included on your invoice:

  • India
  • Japan
  • Korea
  • Singapore
  • Taiwan

North, Central, and South America

In the United States, Canada, Mexico, Chile, and Colombia, various tax rates apply depending on the product nature and your location.

If your billing is done by Microsoft Corporation (see your invoice, and you signed up for Microsoft 365 outside of the United States, Canada, Puerto Rico, Chile, and Colombia, then tax is generally not charged.

Add your VAT ID

  1. In the admin center, go to the Billing > Your products page.
  2. On the Products tab, select the subscription that you want to update.
  3. On the subscription details page, in the Service usage address section, select Edit service usage address.
  4. On the Edit service usage address pane, in the VAT number box, enter your VAT ID, including the prefix, and without any spaces.
  5. Select Save.

How taxes are calculated

Sales taxes are calculated against the unit price, and then aggregated.

For example:

(unit price X tax rate) X quantity = total sales tax

-or-

($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.

Country or region Documentation
Canada Certificate of Exemption (or equivalent letter of authorization)
Chile IVA status/RUT (Registro Unico Tributario)
Colombia IVA status/RUT (Registro Unico Tributario)
International organizations that hold tax exemption Certification / letter confirmation from local tax authorities
Ireland 13B/56A Tax Exemption Certificate
United States Sales Tax Exemption Certificate
Puerto Rico Certificado de Compras Exentas

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