Do you pay VAT when you buy a domain from an Italian company?
Our prices include 22% Italian VAT, but a US business doesn't pay it. Who pays VAT on a domain bought from Italy, what you need at checkout (your EIN or tax ID), how EU reverse charge works, and an example with real numbers.
If you've never bought from a European company, the price tag can be confusing. Our domain prices include 22% Italian VAT (value-added tax, Europe's version of a sales tax), but many of our customers don't pay it. Whether you do depends on one thing: are you buying for a business, and where is that business based? Here's how it works, with real numbers. One caveat: this is a practical explanation, not tax advice. For your own situation, ask your accountant.
VAT on a domain bought from Italy: the short answer
- A business outside Italy with a tax ID (a US company with an EIN, a UK, Canadian or Swiss company with its tax number, an EU company with a valid VAT number) pays no VAT. You pay the net price and get an invoice without VAT.
- A business in Italy pays 22% VAT and deducts it as usual.
- An individual, in Italy or anywhere else, pays the listed price, which already includes 22% Italian VAT.
Who pays VAT on a domain bought from Italy
| Who's buying | VAT on the invoice | What you pay on SeeURL | What you need at checkout |
|---|---|---|---|
| US business | none | the net price | company name, country, EIN |
| Other business outside the EU (UK, Canada, Switzerland, Australia…) | none | the net price | company name, country, tax ID |
| Business in another EU country | none (reverse charge) | the net price | a VAT number that checks out in VIES |
| Business in Italy | 22%, deductible | the listed price | Italian VAT number |
| Individual, anywhere | 22% Italian VAT | the listed price | name and country |
US businesses: no VAT on a domain bought from Italy
If you're buying for a US company, choose "business" at checkout, select United States and enter your company name and your Employer Identification Number (EIN). The price drops to the net amount, and Nexia S.r.l. issues an invoice without VAT. The same goes for installment plans: every installment is calculated on the net price.
Make sure the name on the order is the business that will use the domain. The invoice and the domain registration both follow what you enter at checkout.
Why business buyers outside the EU don't pay VAT
EU VAT follows where the customer is, not where the seller is. For services sold to businesses, the sale is taxed in the buyer's country, and when that country is outside the EU there's no EU VAT to charge. The European Commission puts it simply in its guide to cross-border VAT: if you provide services to customers outside the EU, "you usually do not charge VAT". The details are in the Commission's page on the place of taxation.
Businesses in the EU: reverse charge
Between businesses in two different EU countries, the seller doesn't charge VAT. The buyer accounts for it in its own country under the reverse charge rule. The condition is a valid EU VAT number, which you can check for free in the Commission's VIES system. If your number doesn't check out, the sale is treated like a sale to an individual, with 22% Italian VAT, so it's worth a quick look before you buy.
Buying as an individual
If you're buying for yourself rather than for a business, you pay the listed price. It already includes 22% Italian VAT, and it's the same wherever you live: what you see is what you pay, installments included. Prices are in euros (EUR); your card issuer converts them to dollars at its own rate.
What about US sales tax?
The US has no VAT. Sales and use tax rules are set state by state, and some states tax certain digital purchases. We're an Italian company and don't collect US sales tax, so if your state expects you to report use tax on purchases from abroad, that's between you and your state. Your accountant will know in a minute.
An example with real numbers
Take a domain listed at €1,220, VAT included (€1,000 + 22% VAT):
- an individual in the US or anywhere else pays €1,220;
- a US company with an EIN pays €1,000, invoice without VAT;
- a Canadian, British or Swiss company with its tax number pays €1,000;
- a German company with a valid VAT number pays €1,000, under reverse charge;
- an Italian company pays €1,220 and deducts €220 of VAT, so its real cost is €1,000.
In every case the price includes the first year of renewal for the domain and its DNS, and the domain is registered in your name as soon as you pay (after the last installment on a payment plan). We own every domain we sell, so the invoice comes straight from Nexia S.r.l., a company based in Milan, Italy, VAT number IT10204250962. No broker, no commission.
Questions we get about invoices
Can I change the details on the invoice after I buy?
It's much easier to get them right at checkout: the invoice is issued with the details you enter there. If you're buying for your company, choose "business" from the start.
Do renewals follow the same VAT rules?
Yes. Renewal from the second year follows the same rules as the purchase, for the same owner.
What about installments?
They follow what you chose at checkout: a business outside Italy pays every installment on the net price. See How to buy a domain name in installments.
Buying for your business? See business domains for sale or browse .com domains. A question about your invoice? Call +39 02 500 427 87, Monday–Friday 9 AM–7 PM and Saturday 9 AM–4 PM, Italian time (CET/CEST).