Is Tax Included with My Monthly or Yearly Plan?

HostGator currently collects Texas Sales & Use Tax from Texas customers and Value Added Tax (VAT) for customers in the European Union (EU).

Why is tax included or not included with my purchase?

If you are outside of Texas or the European Union, then we are not required to collect tax (e.g. sales tax, use tax or VAT) on your account.

Texas: Any customers with a billing address in Texas will be required to pay a state sales tax on top of the initial invoice. This does affect current customers and will be applied to recurring charges.

European Union: Any customers with a billing address in the European Union will be required to pay the applicable VAT rate on top of the initial invoice. This does affect current customers and will be applied to recurring charges.

India: Any customers with a billing address in India will be required to pay the applicable India Service Tax rate on top of the initial invoice. This does affect current customers and will be applied to recurring charges.

The amount of sales tax or VAT added is indicated on your invoice, which can be viewed and printed at Billing Portal - Billing History.

Note: All currency is in U.S. Dollars (USD).

Do you accept tax exempt numbers?

To be exempt from Texas Sales & Use Tax, we need the proper documentation proving tax exemption status.

For business tax exemption, we will require the appropriate form be completed and emailed or faxed back to us for verification.

For non-profit organizations, we require a copy of your 501(c)3 certificate via email or fax.

Please contact our Billing department via phone or Live Chat to provide the documents or fax them to Billing at (281-476-7800).

Do you accept VAT tax exemption numbers?

All VAT tax exemptions are handled through the VATIN itself . You would need to edit the account settings to the proper customer type (Individual [never exempt], Business or Charity) and enter the VATIN.

The amount of sales tax or VAT added is indicated on your invoice, which can be viewed and printed at Billing Portal - Billing History.

Why do you collect sales tax from Texas residents and not from out-of-state residents?

According to United States Supreme Court decisions interpreting the U.S. Constitution, HostGator is only required to collect taxes for states in which it physically operates. As such, HostGator is not required to collect sales & use tax or value added tax (VAT) for states and countries it does not reside in.

Why do you collect sales tax from European Union residents and not from other countries?

As a non-European Union supplier of web hosting services to customers in the European Union, HostGator is required to comply with the European VAT (Value Added Tax) regulations and charge VAT to customers located in the European Union.

For more information on whether this applies to you, please read our article on:

What about other countries?

For jurisdictions that HostGator does not collect sales & use tax or VAT for, it is the responsibility of the purchaser to pay any sales & use tax or VAT due, if any. Some jurisdictions require the purchaser to pay a use tax or VAT directly to the state when purchasing from any out-of-state vendors in certain circumstances (i.e. in some jurisdictions, the tax is still due, but HostGator is not required to collect it). Please consult your accountant or government tax office for specific advice.

External References

Note: The following links are to external sites and will open in a new tab. Hostgator does not support or confirm the content of these links.

State of Texas

If you are curious or just want to hear it directly from the taxing authority, here are some links to the Texas Comptroller of Public Accounts' website which will give you a greater understanding of the law.

If you do business, or plan on doing business in Texas, this is recommended reading.

European Union

For Europe, check out the European Commission Taxation and Customs Union website which explains Value Added Tax (VAT).

If you do business in Europe or have European customers, these are recommended.

Data Processing Tax Rate in Texas

The Texas state sales tax is currently 6.25%. In addition to the state sales tax, HostGator is also required to charge a 2% local sales tax rate. The 8.25% sales tax rate is imposed on web hosting services, which is considered a "data processing service." Data processing services have been deemed to be taxable services under Texas law, however, 20% of the value of data processing services are exempt. Therefore, only 80% of the web hosting purchase price is subject to the Texas state and local sales tax.