SEMrush collects Value Added Tax (VAT) for customers residing within the European Union, Goods and Services Tax (GST) for customers in Australia, and Sales Tax for customers within Pennsylvania, Texas, and Massachusetts within the United States.
Value Added Tax (VAT) in the European Union is a general and broadly based consumption tax assessed on the value added to goods and services. It applies to most goods and services that are bought and sold for use or consumption in the European Union.
According to EU VAT regulations enforced at the beginning of 2015, the SEMrush Corporation is obliged to collect VAT on payments of customers consuming our service within the European Union.
When ordering a new SEMrush subscription, you will be asked to confirm whether or not you are inside the EU for VAT purposes. If you confirm that you are outside of the European Union for VAT purposes, VAT will not apply.
If you are within the European Union for VAT purposes, you should take the following details into account:
- If you consume our service, being a legal entity (B2B), and provide us with your valid VAT number, VAT will not be applied to your payment.
- If you consume our service, being a legal entity (B2B), and your VAT number is not valid, VAT will be applied at the appropriate rate of your country of residence. To avoid this, please make sure that:
- Your VAT number is entered correctly, including your country number; and
- You are not using your personal (individual) VAT number.
- If you consume our service, being a legal entity (B2B), and we are unable to verify the VAT number you entered, your payment will be processed. We will try to verify it again later. If your VAT number is incorrect, your subscription will be terminated and your payment will be completely refunded.
- If you consume our service, being an individual (B2C), VAT will be applied at the appropriate rate of your country of residence.
For users who have purchased a SEMrush recurring subscription or who began using the automatic API-billing feature before 2015: VAT has already been applied at the appropriate rate of the country indicated by your invoice information on your User Profile.
Also, if you update your Profile by entering a new VAT number or another country or state of residence, the cost of your recurring subscription may change according to possible differences in your VAT rate.
For example, if a customer completes an order for a recurring subscription and confirms that he/she is outside the EU, and then later confirms that he/she is a EU resident via the Profile form, VAT will be charged with the next payment.
Or, if a customer completes an order for a recurring subscription and confirms that he/she consumes SEMrush services in Cyprus, a VAT rate of 19% applies. If Greece is selected as a country of consumption, a VAT rate of 24% will apply.
If you have a recurring subscription, and you change your billing information when paying for other SEMrush products, such as a custom report or an API package, VAT will be applied to your recurring subscription with the next payment.