Starting in 2020, Academia is required by the European Union (EU) and the United Kingdom (UK) to add a Value Added Tax (VAT) to the subscriptions of customers located in those regions.
VAT is a consumption tax charged in many countries. If you are located in the European Union (EU) or the United Kingdom (UK), VAT may be added to your Academia Premium subscription.
Below is a broad definition provided by the European Commission:
The Value Added Tax, or VAT is a general, broadly-based consumption tax assessed on the value added to goods and services. It applies more or less to all goods and services that are bought and sold for use or consumption in specific countries. Thus, goods which are sold for export or services which are sold to customers abroad are may not be subject to VAT. Conversely imports are taxed to keep the system fair for some producers so that they can compete on equal terms with specific markets with suppliers situated outside the Union.
Who is charged a VAT?
You may be charged VAT if your billing location is in the EU or the UK.
When is VAT applied?
VAT is added during checkout and on renewal payments, when your next Premium charge is processed.
How is VAT is calculated?
VAT is a percentage of your subscription price. This may grow the cost of your Academia Premium subscription.
For example, if your invoice amount is €10, and your country's VAT rate is 20%, Academia will add 20% of your subscription cost (€2), meaning your total subscription cost becomes €12.
Here's the exact formula: Total = Subscription price + \\(Subscription price × VAT rate\\)
How much VAT am I expected to pay?
VAT rate varies by country, so the example amounts above may not apply to your specific situation.
Your exact VAT amount will be shown before you pay. You can also see how much VAT your country charges when billed by a company located in the United States, such as Academia.
If you have already upgraded to Academia Premium, you will see this information on your Academia Premium settings page for your next subscription payment, along with the date it will be billed.
I did not pay VAT before. Why is VAT on my subscription now?
Academia was required by the European Union and the UK government to start collecting VAT in 2020, so any renewal payments moving forward will have VAT added, even if previous subscriptions renewals did not.
Will I be charged VAT retroactively for payments in 2020 or earlier?
No. VAT is not charged retroactively for past subscription payments.
My company, university, or organization is exempt from VAT. Can I apply an exemption?
VAT exemptions are not supported at this time, including for organizations that may be eligible. If you need VAT documentation for accounting purposes, you may download your invoice or receipt for the charge from your account page.