As of 1 March 2020, DigitalOcean charges a 24% Value Added Tax (VAT) to customers with a tax location in Iceland.
This complies with Iceland’s requirements for non-resident companies like DigitalOcean.
If you are a non-business customer of DigitalOcean in Iceland, your invoice includes a VAT charge of 24% based on the address associated with your team.
If you are a business customer of DigitalOcean with a valid VAT ID in Iceland, you can add it to your team on the Billing page’s Settings tab. Adding your VAT ID removes tax charges from your invoice, but you are still subject to the reverse charge mechanism (RCM). If you have a valid VAT ID but don’t add it to your team, your invoice includes tax charges.
Your tax location is typically based on your account address, which is initially set to the payment address of your primary payment method when you sign up. In some locations, we are required by law to consider other account details, like other payment addresses or IP addresses.
You can update your account address and view your account's tax location and rate at any time on the Billing page's Settings tab. If you've set your account address correctly but your account's tax location is not what you expect, contact support for help.
USD is the only currency we accept for payments, so all invoices are in USD. We cannot provide invoices in other currencies. Learn more about invoices.