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Help Windows Desktop

VAT changes for Skype customers in EU

On 1 January 2015, we changed the way EU residents are charged VAT for Skype products. If you don't reside in the EU, these changes don’t apply to you.

To make sure you’re paying the correct VAT rate, please sign into your account and check under Billing Information that we have the right address for you.

What's changed?

Starting from 1 January 2015, EU residents are charged the VAT rate prevalent in the country of residence as opposed to the previous VAT rate of 15%.

What is the VAT rate applicable in my country?

Current applicable VAT rates in EU member states can be found here.

How will this change affect me?

This change could affect you in different ways depending on the Skype products you use.

Pay As You Go calls:

Our Pay As You Go rates are now VAT-inclusive, where applicable. For quality calls at very affordable rates to mobiles and landlines worldwide, please see our rates page.

Subscriptions & Skype Numbers:

Unlike Pay As You Go calls, VAT on subscriptions and Skype Numbers is charged at the time of purchase or renewal.

Skype Credit and Auto-recharge:

VAT is not charged when you buy Skype Credit or when your Skype Credit is automatically topped up. You're still charged exactly the amount of credit you buy.

However, the applicable VAT-inclusive rates are now applied when you use your Skype Credit to make calls, send SMS, use Skype Wi-Fi or any other paid Skype products.

Do you have an example?

For a customer living in a country with 20% VAT:

  • Before 1 January, 2015 a subscription costs €5.75 (€5 subscription plus €0.75 VAT at 15%).

  • After 1 January, 2015, the same subscription costs €6 (€5 subscription plus €1 VAT at 20%).

I am a Skype Manager customer. How does this affect me?

Learn more about VAT changes for Skype Manager customers in the EU.

How do I get VAT invoices?

VAT invoices are currently available in certain EU member states. Learn more.

Monthly VAT invoices contain only transactions which have an effect for VAT purposes. VAT invoices for any month are available on the 5th of the following month (starting with invoices for January 2015).

All Skype customers already have access to itemized monthly statements of their Skype activity. For more information, please read our guide to monthly statements.

Will I be able to download VAT invoices for past months?

We have had to rebuild our systems from the ground up to make all these changes possible. As a result, new VAT invoices can’t be run for periods prior to January 2015.

Do these changes affect how I use Skype in my business?

Skype is provided for consumer use only.

Skype for Business will be introduced very soon and will bring your familiar Skype experience together with the enterprise security, compliance, and control of Lync to create the most loved and trusted communications platform for doing things together.

Customers can continue to use Skype Manager to create accounts, allocate Skype Credit, manage subscriptions & features to get the most out of Skype. Learn more about how these changes affect Skype Manager customers.

Why has this change happened?

Skype is required to comply with the EU Directive 2008/8/EC for VAT. This directive stipulates that customers are charged the VAT rate of the EU member state to which they belong.

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