Cloudways, as part of DigitalOcean LLC, complies with local tax regulations by charging applicable taxes based on your country’s tax laws.
The tax rate on your Cloudways invoices depends entirely on your billing location.
If you're a registered business, you may be eligible for a tax exemption on cloud services by adding a valid Tax ID (such as VAT or GST) directly through the Cloudways Platform. Once verified, the exemption will apply to future invoices.
This guide provides everything you need to know about fiscal tax handling at Cloudways, including how to check your tax rate, update your tax location, and request a tax exemption.
Table of Contents:
Tax Details by Country
Below is a breakdown of tax rates by country. These rates apply based on your billing address and local tax regulations. Click on the country names below to view specific tax policy details for Cloudways clients in that region.
Countries | Tax Rate |
20% | |
10% | |
20% | |
10% | |
Varies | |
19% | |
14% | |
Varies | |
18% | |
24% | |
18% | |
11% | |
10% | |
12% | |
16% | |
Laos* | 10% |
8% | |
15% | |
7.50% | |
25% | |
20% | |
15% | |
9% | |
12% | |
15% | |
10% | |
8.10% | |
8.10% | |
18% | |
7% | |
20% | |
5% | |
20% | |
20% | |
Varies | |
10% |
* In these regions, tax is collected from all customers regardless of their tax registration status.
How to View Your Tax Location & Rate?
You can easily check your tax location and applicable rate directly from your Cloudways account settings in just a few steps. But first, log into your Cloudways platform.
The steps below explain how to view your tax location and rate in Cloudways platform. If you're using the new billing interface, follow the first set of instructions. For the classic interface, scroll down to follow the steps.
Step #1:
Click on your profile name in the top-right corner of the platform and select Billing from the dropdown.
Step #2:
On the Billing page, go to the Settings tab.
Step #3:
Scroll down to the Tax Location section. Here, you’ll find your current tax location along with any relevant links.
Note:
The tax applied to your account is determined by your billing address. If your tax location is incorrect, you can update your billing details or contact support.
Steps to View Taxes in Your Month-to-Date Billing:
To see how much tax has been applied to your current usage, navigate to the Billing > Overview tab on the Cloudways Platform.
Scroll down to the Month-To-Date Summary section. Under the Taxes row, you’ll find the tax amount, your tax location, and the applicable tax rate (e.g., Michigan U.S. (20% VAT)).
This gives you a clear estimate of how taxes are calculated as part of your total billing.
Note:
This value is estimated and may slightly differ from your final invoice due to usage changes or rounding adjustments.
How to Apply for Tax Exemption?
If you want to apply for tax exemption, you can submit a valid tax exemption certificate directly through the Cloudways Platform.
Here's how:
Step #1:
Navigate to the Billing > Settings section of your Cloudways account.
Step #2:
Scroll down to the Tax Exemption section and click Add Exemption Form.
Step #3:
A confirmation popup will appear showing your company name (Example: DigitalOcean). Review it and update, and click Continue to Ryan ControlPoint.
Step #4:
On the Ryan ControlPoint portal, choose one of the following options:
Fill Out a Form Online
Upload Signed and Completed Forms
Step #5:
After submission, you’ll see a confirmation message stating that your Tax Exemption Certificate is added and pending review.
Your Tax Exempt Status will update once the certificate is verified.
Note:
Once approved, your exemption will only apply to future invoices. Taxes on past invoices cannot be refunded.
How Does Tax Affect Me?
To reiterate, Cloudways adds tax to the invoices for clients located in specific countries (listed in the above section). For instance, if your invoice amount is $22.50, and assume your tax rate is 20%, your total invoice will be $27.00, including tax. Cloudways charges a tax rate based on your tax location, and your invoice will also have subtotal and charged tax listed along with the total.
How to Update Tax Location?
You can change your location byupdating your billing address using the Cloudways Platform. If we incorrectly determined your tax location after you set the right billing address, please contact Cloudways support for help.
FAQs
How does Cloudways determine my tax location?
Your billing address helps to determine the tax location which you provide when you sign up and upgrade your account. Please note that we are required by law to consider other account details at some locations, like other payment addresses or IP addresses.
How can I change my tax location?
You can change your location by updating your billing address using the Cloudways Platform. If we incorrectly determined your tax location after you set the right billing address, please contact Cloudways support for help.
How can I view my tax location and rate?
You can view your tax location and rate using the Accounts section in Cloudways Platform. Additionally, you can estimate your upcoming invoice (as per your current usage levels and projected taxes) using the Real-time Billing feature. Please note that the Real-time billing features only give you an estimate; thus, it can not be considered a final invoice.
Can I get a refund of the tax charge from the previous invoices?
Unfortunately, no reimbursement can be offered against the tax charge from previously paid invoices, as you should supply tax-related information when upgrading the account. However, registered businesses at certain locations can get a tax exemption for future invoices by entering a valid Tax ID, e.g., VAT or GST ID, directly from the Cloudways Platform.
My country is exempted from the VAT/GST; what should I do?
Cloudways Platform will detect your tax location, and if you are eligible for the tax exemption, you need to provide us with a valid VAT or GST ID using the Cloudways Platform. Once verified, your future invoices will be exempted from the tax charge.
My territory’s VAT rate is different from the standard rate of the country. Do I still have to pay the same VAT rate?
The displayed rate on the Cloudways Platform is the updated tax rate in your region which will be applicable on your invoices.
My EU country/territory is excluded from EU VAT rules. How can I get my correct territory added to get the VAT exemption?
You may share a document proof with us at [email protected] if your territory/country is excluded from EU VAT.
I had entered the tax ID, yet my tax was deducted; why is that so?
We suggest verifying the tax ID first, and if it is incorrect, please add the correct one. The tax is still deducted in case of the wrong tax ID.
That’s it! We hope this article was helpful.
Need Help?
If you need assistance, feel free to:
Visit the Cloudways Support Center
Chat with us: Need a Hand > Send us a Message
Or create a support ticket anytime.
We're here 24/7 to help you!