Does my Thinkific subscription include sales tax? – Thinkific

Question

What currency does Thinkific charge for subscriptions?
What is the sales tax charge for my Thinkific subscription?
Are the Thinkific subscription charges inclusive of sales tax?
How can I change my account's zip or postal code?

Solution

As a Creator Educator, we understand that it's important for you to have a seamless and convenient experience. That's why we've made it easy by localizing our subscription prices based on your local currency and regional taxes. This means that you'll always know exactly what you're paying, without having to worry about exchange rates or unexpected fees. With pricing and tax localization, you can focus on creating and delivering your content while we take care of the rest.

USA & Canada

For Creators in the United States and Canada, subscription prices will be charged in USD with an additional localized sales tax based on the applicable rate at the time of billing. These tax rates may vary depending on your location, including the state, province, territory, city, or county, where your business is based. Please note that these rates may change over time in accordance with local tax requirements. To ensure that we calculate the correct amount of tax, we rely on the zip/postal code we have on file from your billing details. Keep your information up-to-date to avoid any errors or discrepancies.

United Kingdom & European Union

We are working hard to bring this feature to all Creators in the EU.

Starting in June 2023, Thinkific subscriptions will be charged in GBP or Euros for our UK and EU Creators, with regional value-added tax (VAT) added on top. The amount of VAT charged will be based on your business location, so it's important to keep your billing details up-to-date to avoid any errors or discrepancies.

Thinkific will notify you of this change 30 days in advance via your billing email, and prompt you to update your billing details, so we can ensure that the correct tax is applied to your billing going forward.

Tax-Supported Countries and Regions

Current Tax-Supported Countries
Austria	Belgium	Bulgaria	Croatia
Cyprus	Czech Republic	Denmark	Estonia
Finland	France	Germany	Greece
Hungary	Ireland	Italy	Latvia
Lithuania	Luxembourg	Malta	Netherlands (The)
Norway	Poland	Portugal	Romania
Slovakia	Slovenia	Spain	Sweden
United Kingdom

How to Update Your Zip/Postal Code

If you or your organization is tax-exempt, please review the FAQ at the bottom of this article for next steps.

From your Admin Dashboard, select Account Details under your account
Under Billing details click Manage Subscription then Manage Tax Info
Select your Country from the drop-down menu
Input your Postal/Zip Code in the field provided
Click Update My Info

Frequently Asked Questions

Does this affect the fees my students pay?

No. Sales tax is only applied to the fees for your Thinkific subscription plan. If you are interested in collecting Sales tax on your student payments, see: TCommerce: Sales Tax Solution Early Access.

I operate my business out of several different countries. What country should I set as my billing detail?

If you operate your business out of several different countries, your country and location should reflect the location in which you primarily use Thinkific.

Where can I see if sales tax applies to my region?

You can see the tax amount for your current postal/zip code within your account details and on your invoice.

Why can't I input my VAT information?

If you are having issues inputting your VAT details, make sure to check your formatting. You'll need to include Country Code and then the Numeric Values. In Italy for example, you need to prefix your VAT Number with IT, so it should look like "IT00000000000".

If you are a Plus client, please send an email to billing@thinkific.com. Our Billing team will be happy to assist with any billing information updates.

Can I claim VAT back on my Thinkific subscription expense?

Thinkific provides our UK and European customers with the option to input their VAT number on their subscription. If you are a Plus client, please email billing@thinkific.com and the team will be happy to assist you.

Adding your VAT number will prompt us to issue you an invoice without VAT on a reverse charge. If you are VAT registered and do not enter a valid VAT number on your subscription, then Thinkific will issue you an invoice with VAT. You may be able to reclaim the VAT as input tax on your VAT return.

Please note that as individual tax situations and local circumstances are unique, it is always advisable to speak with a tax expert for guidance regarding your specific situation and options.

I am/my organization is tax exempt but I have been charged tax on my subscription’s invoice, how can this be rectified?

Tax exemption can only be requested by creators located in the United States and Canada.

Please reach out to taxes@thinkific.com with the information listed below so we can verify your status.

We will require the following information in order to request validation of your tax-exemption certificate/documentation. The information should align with what is outlined in the documentation.