HostShop Tax and VAT Settings

Jordan Graves

Published: 29 September 2026Last updated: 29 September 2026

This article explains how HostShop works out the tax (VAT, sales tax or GST) that your customers pay. It also explains how to set up your tax profile, how to read the Tax Rates table, how to add custom tax rates, how your customers can add a VAT number, and what appears on checkout and on invoices. There is a section for each type of Reseller: UK, EU, US, and Resellers based anywhere else.

Important: You are the seller to your customers, so you are responsible for the tax you charge, your tax registrations and your tax returns. HostShop's rates are guidance based on the settings you choose. 20i does not provide tax advice. If you're unsure which rules apply to you, speak to a qualified tax adviser.

---

Where to find HostShop Tax Settings

HostShop Tax Settings are accessible within My20i from the sidebar, under HostShop > Tax Settings.

If you're setting up HostShop for the first time, the same settings appear as the Tax Settings step of the HostShop setup wizard.

The Tax Settings page has these sections:

Profile Summary: your location, the tax rules that apply to you, your VAT registration and your VAT number.
Invoice Address: the address printed on the invoices HostShop sends your customers.
Sales (UK and EU Resellers only): how you sell to consumers in other EU countries.
US Sales Tax (Resellers outside the UK and EU): whether to charge US state sales tax.
Tax Rates: a table of the rate each customer location pays, with the option to add custom rates.
All Other Countries (Resellers outside the UK and EU): the rate for any customer who doesn't have a more specific rate. This sits in the Tax Rates section, below the table.
Custom Sales Tax Label: the default name for tax on your shop and invoices, for example VAT, GST or Sales Tax.

---

How HostShop decides the tax rate

HostShop works out the tax for each customer automatically. It uses three things:

1. Your location - This is the country in your 20i account's contact details. It decides which tax rules apply to you: UK VAT, EU VAT, or the rules for Resellers outside the UK and EU.
2. Your VAT registration - UK and EU Resellers who haven't added a VAT number are treated as not VAT registered, and HostShop charges no VAT.
3. Your customer's location and VAT number - HostShop uses the country in your customer's contact details. If your customer is a business with a valid VAT number in a different country from you, the sale may be reverse charged at 0%.

The Tax Rates table shows the result of these rules for each location, so you can check what your customers will pay before they buy.

Web hosting, domains, email and SSL certificates are treated as electronically supplied services. For UK and EU VAT, that means VAT is normally due in the customer's country, with the exceptions explained for each Reseller type below.

---

Your Profile Summary

The Profile Summary section shows the details HostShop uses to work out your tax:

Location: your country, and region or state, from your 20i account's contact details.
Tax rules: one of UK VAT, EU VAT or outside the UK and EU.
VAT registration: Registered if you've added a VAT number, otherwise not registered.
EU sales (UK and EU Resellers only): the EU Sales option you've chosen.
VAT number: where you add, change or remove your VAT number.

If your location is wrong

Your location comes from your 20i account's contact details, not your shop's currency. If you move country, update your account contact details, and HostShop will apply the tax rules for your new country.

Your shop's currency doesn't change your tax rules. For example, a UK Reseller whose shop is priced in US dollars still follows UK VAT rules.

Adding your VAT number

In Profile Summary, enter your number in the VAT number field and select Update. To take it off, select Remove.

UK Resellers: the field is labelled UK VAT Number. HostShop checks the number with HMRC.
EU Resellers: the field is labelled VAT Number. HostShop checks the number with the EU's VIES service.
Resellers outside the UK and EU: the field is labelled Tax/VAT Number, for example, an ABN or GST number. It's printed on your invoices but doesn't change the rates HostShop charges.

For UK and EU VAT numbers, the number must be registered to the company name in your 20i account's contact details. If the check fails, make sure your company name matches your VAT registration exactly.

---

Tax rules for UK Resellers

These rules apply if your 20i account's contact address is in the United Kingdom.

UK Resellers who are VAT registered

If you've added a UK VAT number, HostShop charges:

Customers in the UK or the Isle of Man: UK VAT at 20%, whether they're a consumer or a business.
Consumers in the EU: the VAT rate of the customer's own EU country (the destination rate), for example 19% in Germany or 21% in Spain.
Businesses in the EU with a valid VAT number: 0%, reverse charged. The business accounts for the VAT in its own country.
Customers in the Canary Islands, Ceuta or Melilla: 0%. These areas are outside the EU VAT area.
Customers anywhere else in the world: 0%. The sale is outside the scope of UK VAT.

EU consumers and non-Union OSS

Since Brexit, there is no sales threshold for UK sellers selling digital services to EU consumers. VAT is due in the customer's EU country from the first sale. UK sellers usually account for it through the EU's non-Union One Stop Shop (non-Union OSS). OSS replaced the old VAT MOSS scheme in July 2021.

In EU Sales, UK Resellers choose one of two options:

Sell to EU consumers (I'm registered for the non-Union OSS scheme): EU consumers pay their own country's VAT.
Don't sell to consumers in the EU: EU consumers can't order from your shop. EU businesses with a valid VAT number can still order, at 0% (reverse charge).

If you sell to EU consumers without being registered for non-Union OSS, HostShop shows a notice at the top of Tax Settings.

UK Resellers who are not VAT registered

If you haven't added a UK VAT number, HostShop charges no VAT to any customer. Businesses below the UK VAT registration threshold are not allowed to charge VAT.

If you're registered for a tax outside the UK and EU (for example Canadian GST), you can still add a custom rate for that country. See [Custom tax rates](#custom-tax-rates).

---

Tax rules for EU Resellers

These rules apply if your 20i account's contact address is in a European Union member state.

EU Resellers who are VAT registered

If you've added a VAT number, HostShop charges:

Customers in your own country: your country's VAT rate, whether they're a consumer or a business.
Consumers in other EU countries: depends on your EU Sales option (see below).
Businesses in other EU countries with a valid VAT number: 0%, reverse charged. The business accounts for the VAT in its own country.
Customers in the UK or the Isle of Man: 0%. The UK is outside the EU VAT area.
Customers in the Canary Islands, Ceuta or Melilla: 0%. These areas are outside the EU VAT area.
Customers anywhere else in the world: 0%. The sale is outside the scope of EU VAT.

EU Sales options for EU Resellers

In EU Sales, EU Resellers choose how consumers in other EU countries are charged:

Charge my own country's VAT: consumers in other EU countries pay your country's VAT rate. This is for sellers whose cross-border sales to EU consumers are under the EU-wide €10,000 threshold.
Charge each customer's country VAT (I'm registered for OSS): consumers in other EU countries pay their own country's VAT rate. This is for sellers above the €10,000 threshold, or who have chosen to use the One Stop Shop (OSS).
Only sell to consumers in my own country: consumers in other EU countries can't order from your shop. Businesses in other EU countries with a valid VAT number can still order, at 0% (reverse charge).

Whichever option you choose, businesses in another EU country with a valid VAT number are reverse charged at 0%.

EU Resellers selling to UK customers

HostShop charges UK customers 0%. If you sell to UK consumers, you may need to register for UK VAT with HMRC, because the UK has no registration threshold for overseas sellers of digital services. If you're registered, add a custom rate for the United Kingdom. See [Custom tax rates](#custom-tax-rates).

EU Resellers who are not VAT registered

If you haven't added a VAT number, HostShop charges no VAT to any customer. If you're registered for a tax outside the UK and EU, you can add a custom rate for that country.

---

Tax rules for US Resellers

These rules apply if your 20i account's contact address is in the United States.

US Resellers must choose a tax setting before they can open HostShop. Set either or both of these:

All Other Countries rate: one rate for every customer who doesn't have a more specific rate. Enter 0% if you don't charge tax.
US Sales Tax: charge US customers the sales tax base rate for their state.

If you do neither, the HostShop setup wizard shows "Set a tax rate for all other countries in Tax Settings (enter 0% if you don't charge tax), or turn on US sales tax." and you can't open your shop.

Charging US sales tax

To charge US sales tax, go to the US Sales Tax section of Tax Settings and turn on Charge US sales tax. Then add every state you have a sales tax nexus in under States with Nexus. Your own state (from your 20i account's contact details) is always included.

With US sales tax turned on, HostShop charges:

Customers in your own state or a nexus state: that state's sales tax base rate, for example, 7.25% in California.
Customers in other US states: 0%.
Customers outside the US: your All Other Countries rate.

HostShop matches customers to states using the state in their contact details. Both full names, for example "California", and two-letter codes, for example "CA", work.

Limits of US sales tax in HostShop

HostShop uses state base rates only. It doesn't add county, city or other local sales taxes.
Web hosting isn't taxable in many US states, and some states tax it differently. Charging sales tax on a service that isn't taxable can also be a compliance problem. Check which states you need to collect in with your tax adviser.
If a different rate applies to you in a state, for example, a combined state and local rate, add a custom rate for that state. See [Custom tax rates](#custom-tax-rates).

US Resellers who don't charge tax

If you don't charge sales tax, set the All Other Countries rate to 0% and leave US sales tax turned off.

---

Tax rules for Resellers outside the UK, EU and US

These rules apply if your 20i account's contact address is outside the United Kingdom, the European Union and the United States, for example Australia, Canada, India or Norway.

HostShop doesn't know the tax rules for every country, so you set the rates yourself:

1. All Other Countries rate: set the rate you charge to every customer who doesn't have a more specific rate. Enter 0% if you don't charge tax. You must set this before you can open HostShop.
2. Custom rates: add a rate for any country or region that needs a different one. For example, an Australian Reseller might charge GST at 10% for customers in Australia and 0% everywhere else. See [Custom tax rates](#custom-tax-rates).
3. Tax label: set the name for tax on your shop and invoices, for example GST. You can set a default in Custom Sales Tax Label, or a label for each custom rate.

Your Tax/VAT number, for example, an ABN, is printed on your invoices. It doesn't change the rates.

---

The Tax Rates table

The Tax Rates section shows the rate HostShop charges customers in each location, based on your settings. It updates when you change your profile, EU Sales option or US sales tax settings.

What the columns mean

Location: the country or region, shown with its flag.
Consumers: the rate and tax label for a customer who isn't a VAT-registered business.
Businesses with a VAT number (UK and EU Resellers only): the rate for a business with a valid VAT number in that location. This is often 0% because of the reverse charge.
Why: a short explanation of the rate, for example "Destination rate (non-Union OSS)", "Reverse charge: customer accounts for VAT" or "Outside the scope of UK VAT".

How the rows are grouped

Your Country: your own country.
UK VAT Area: the United Kingdom and the Isle of Man (UK and EU Resellers).
European Union: the 27 EU member states, plus regions outside the EU VAT area such as the Canary Islands, Ceuta and Melilla (UK and EU Resellers).
US States: your own state and your nexus states (US Resellers with US sales tax turned on).
Custom: countries and regions you've added a custom rate for.
All other countries: always the last row. It shows the rate for any location not listed above.

A row marked Not sold is a location where you've chosen not to sell to consumers, for example because of your EU Sales option.

Standard rates

For the UK and EU, HostShop uses each country's standard VAT rate. It doesn't apply reduced rates. 20i keeps these rates up to date, so you don't need to change them when a country changes its standard rate, unless you've added a custom rate for that country.

---

Custom tax rates

A custom rate replaces the rate HostShop would normally charge customers in a country or region. Use one when a different rate legally applies to you. For example:

a tax you're registered for outside the UK and EU, such as Canadian GST, Australian GST or Norwegian VAT;
a region with its own rate, such as Madeira in Portugal;
a US state where you charge a combined state and local rate;
UK VAT for EU Resellers who are registered with HMRC.

Adding a custom rate

1. Go to HostShop > Tax Settings, then the Tax Rates section.
2. Select Add country or region, or select Set custom rate on an existing row.
3. Choose the Country. You can type to search, and each country is shown with its flag.
4. Optionally, enter a Region. For the United States, choose a State. Leave it blank to apply the rate to the whole country.
5. Enter a Tax label, for example VAT, GST, IVA or Sales Tax. Labels can be up to 32 characters.
6. Enter the Rate as a percentage from 0 to 100, with up to 3 decimal places, for example 6.875.
7. Select Add rate, then Save in the Tax Rates section. Rates you haven't saved are marked Unsaved.

Rows with a custom rate are marked Custom and show the standard rate underneath for comparison. To change or delete a custom rate, select Edit or Remove on its row.

How regions are matched

A region rate applies when the customer's county or state field matches the region name you entered. Upper and lower case don't matter. For example, a region named "Madeira" applies to customers who enter "Madeira" as their county or state. For US states, both the full name and the two-letter code match.

If a customer's region doesn't match any region rate, the rate for their country applies.

The Canary Islands, Ceuta and Melilla are outside the EU VAT area. A custom rate for the whole of Spain doesn't apply to customers there. To charge customers in the Canary Islands, add a region rate named "Canary Islands". It also applies to customers who enter an individual island, such as Tenerife or Gran Canaria.

When custom rates don't apply

Reverse charge: a custom rate never replaces a 0% reverse charge for an EU business with a valid VAT number.
Blocked sales: a custom rate doesn't let you sell to consumers; your EU Sales option is blocked.
UK and EU Resellers who aren't VAT registered: custom rates only apply to customers outside the UK and EU VAT areas, because you can't charge VAT without being registered.

---

Tax labels

The tax label is the name for tax shown at checkout and on invoices, for example VAT, GST or Sales Tax.

HostShop chooses the label in this order:

1. The label of the custom rate that is applied, for example, GST;
2. "Sales Tax", for US sales tax;
3. Your default label from Custom Sales Tax Label;
4. "VAT", if you haven't set a default.

To set your default label, go to Custom Sales Tax Label on the Tax Settings page. Leave it blank to use "VAT".

---

Tax notices on the Tax Settings page

HostShop shows notices at the top of Tax Settings when your settings might need attention. For example:

You're a UK Reseller selling to EU consumers, and need to be registered for non-Union OSS;
You're an EU Reseller charging your own rate, which only applies under the €10,000 threshold;
You're an EU Reseller with UK customers;
You've turned on US sales tax, which uses state base rates only;
You're a UK or EU Reseller who isn't VAT registered, so no VAT is charged.

To hide a notice, select the × on it. Hidden notices are remembered in your browser. To see them again, select Show hidden notices.

---

VAT numbers for your customers

Your customers (StackCP Users) can add a VAT number to their account. This matters for business customers in a different UK or EU country from you, who can then be reverse-charged at 0%.

Where customers add a VAT number

In StackCP, under their account's contact details.
When they register during checkout.

The VAT number field only appears for customers whose address is in the UK, the Isle of Man or the EU, and it's optional. Customers enter the number without the country prefix. HostShop checks it with VIES (EU) or HMRC (UK). The number must be registered to the company name in the customer's contact details.

If the checking service is unavailable, the customer can carry on without a VAT number and add it later in their contact details.

When a customer's VAT number means 0%

A customer's VAT number makes the sale 0% (reverse charged) only when all of these are true:

You're VAT registered;
the customer's valid VAT number is from a different country from yours;
both countries are in the UK or EU VAT areas as described above. For example, a UK Reseller selling to a German business, or a French Reseller selling to an Irish business.

A business in the same country as you is still charged VAT. For example, a UK Reseller charges a UK business 20%. Businesses can normally reclaim VAT charged in their own country on their VAT return.

---

What customers see at checkout and on invoices

At checkout

Checkout shows the tax using the label that applies to the customer, for example "VAT", "GST" or "Sales Tax". If the sale is reverse charged, checkout shows "Reverse charge: you account for the VAT in your country."

On invoices

HostShop invoices, both on screen and as PDFs, show:

The tax label charged at checkout, for example GST 10% or Sales Tax 7.25%;
The exact tax rate, including rates with decimals such as 7.25% or 6.875%;
Your VAT or tax number, and your customer's VAT number if they've added one;
"Reverse charge: customer to account for the VAT", when the sale was reverse charged.

The tax line appears whenever tax was charged, including for Resellers outside the UK and EU who don't have a VAT number.

Invoices created before this feature keep the tax details they were created with.

---

Opening HostShop

Before you can open HostShop, the setup wizard checks your tax settings:

UK and EU Resellers: no extra tax setting is required. HostShop works out your rates from your location and VAT registration.
Resellers outside the UK and EU (including US Resellers): you must set an All Other Countries rate (0% is fine) or turn on US sales tax.

If anything is missing, the final step of the setup wizard lists it under Something's Missing, with a button that takes you to the right step.

---

Frequently asked questions

Why isn't HostShop charging my customers VAT?

If you're a UK or EU Reseller, check that you've added your VAT number in Profile Summary. Without one, HostShop treats you as not VAT registered and charges no VAT. Also check the customer's location: UK and EU Resellers charge 0% to customers outside their VAT area, and to EU businesses with a valid VAT number in another country.

Why is a customer in Germany charged 20% instead of 19%?

If you're an EU Reseller using Charge my own country's VAT, consumers in other EU countries pay your country's rate. If your cross-border EU consumer sales are over €10,000, or you're registered for OSS, choose Charge each customer's country VAT instead. UK Resellers always charge EU consumers their own country's rate.

Why is a UK customer charged 0% by my EU shop?

The UK is outside the EU VAT area, so HostShop charges UK customers 0% for EU Resellers. If you're registered for UK VAT with HMRC, add a custom rate for the United Kingdom.

Can business customers reclaim VAT I've charged them?

A business can normally reclaim VAT charged by a supplier in its own country on its VAT return. For businesses in a different UK or EU country from you, the correct treatment is usually a reverse charge at 0%. That only happens if the customer has added a valid VAT number to their account. Ask business customers to add their VAT number in their contact details before they buy.

My business customer's VAT number isn't accepted. Why?

HostShop checks VAT numbers with VIES (EU) or HMRC (UK), and the number must be registered to the company name in the customer's contact details. Ask the customer to check the number, their country and their company name. If the checking service is down, they can add the number later.

Do I have to charge US sales tax?

No. US sales tax is optional in HostShop. US Resellers must either set an All Other Countries rate (0% is allowed) or turn on US sales tax before opening their shop. Which states you need to collect sales tax in depends on your nexus and on whether web hosting is taxable in that state. Check with your tax adviser.

Does HostShop include local US sales taxes?

No. HostShop uses state base rates only. If you charge a combined state and local rate in a state, add a custom rate for that state.

I'm in Australia (or Canada, India, Norway...). How do I charge GST?

Set your All Other Countries rate to what you charge customers outside your registered country (often 0%). Then add a custom rate for your own country, for example Australia at 10% with the label GST. For Canadian provinces with different rates, add a region rate for each province.

Does my shop's currency affect my tax?

No. Your tax rules come from the country in your 20i account's contact details, not the currency your shop is priced in.

I've moved country. What do I need to do?

Update the country in your 20i account's contact details. HostShop will then apply the tax rules for your new country. Check your VAT number, EU Sales option and custom rates in Tax Settings afterwards.

What happened to the VAT MOSS setting?

VAT MOSS was replaced by the One Stop Shop (OSS) in July 2021. In HostShop, the old MOSS option is now part of EU Sales. EU Resellers choose Charge each customer's country VAT (I'm registered for OSS). UK Resellers choose Sell to EU consumers (I'm registered for the non-Union OSS scheme).

Can I charge a reduced VAT rate?

HostShop uses standard VAT rates. If a different rate legally applies to you in a country or region, for example Madeira, add a custom rate for it.

Will my existing customers' tax change?

No. The rates HostShop charges existing customers don't change unless you add custom rates or change your settings. Renewals use the same rules as new orders.

Is this tax advice?

No. HostShop's rates are guidance based on the settings you choose. You're the seller and are responsible for the tax you charge. Check with a qualified tax adviser.