Understanding tax with Klaviyo
You will learn
Learn about tax, including sales tax, VAT, and GST, in Klaviyo, including how it's calculated and how to view it.
How Klaviyo calculates tax
Sales tax, VAT, and GST rates vary depending on where your business operates (i.e., state, region, or country), the type of business you conduct (e.g. resellers), and the type of business you are (since certain nonprofits or government agencies may be excluded from sales tax requirements in the US).
Klaviyo taxes you according to the state, local, and country laws that govern the address listed as your billing address.
How to find your billing address:
- Click the name of your organization in the bottom left corner.
- Click Billing.
- Select Preferences.
How to view sales tax, VAT, or GST
You can view the tax both:
- On your invoice
- When you change plans
View tax on invoices
You can view your tax on your current or past invoices.
To locate your past invoices:
- Navigate to Billing.
- Click Payment History.
On invoices, Klaviyo includes a line item for the calculated tax to reflect the total amount paid. You will also receive an email that includes the total amount charged and a link to the invoice.
You can view the tax on an invoice by:
- Clicking on the link to the invoice, which includes a breakdown of the cost and either sales tax, VAT, or GST (depending on your billing address)
- Downloading the invoice as a PDF, which includes:
- Your organization's billing address
- Tax line item (e.g., percentage and total amount charged)
- Downloading the receipt as a PDF, which includes:
- All items in the invoice
- Receipt number
- Payment method
View tax when changing plans
If you decide to change your plan:
- Navigate to Billing.
- Click Create your plan.
- Review the plan page.
Note: tax is not included in the price per month in the plans, as noted by the disclaimer.
- Click Choose Plan.
- View the checkout page, where you can see the tax applied for the plan you chose.
- Click Confirm and Pay to finish changing your plan.
What do I do if my billing address does not match the one for my tax filings?
On the checkout page, the Use my organization’s primary address as my billing address checkbox is selected by default.
If your organization’s tax filings do not match the address provided for your organization, you can uncheck the Use my organization’s primary address as my billing address checkbox and enter a different address. Otherwise, the default location will pull an estimated tax rate and amount that is added to your total cost.
Why is there a question mark for the estimated tax rate?
The question mark indicates that Klaviyo cannot determine the estimated tax rate. For example, this may happen if you are not in a taxable location.
If your estimated tax rate is unavailable, hover over the question mark next to Unavailable to view the reason.
Request tax exemption: US only
Some nonprofits, religious institutions, educational organizations, research facilities, and others are considered tax-exempt. If you believe that your organization should be tax-exempt, you can follow the instructions for submitting a tax exemption application.
You will need to provide relevant documentation and certificates to get approval for tax exemption. This documentation will vary depending on the state in which you are located, so it's important to reference state laws before submitting them.
GST in Australia
Klaviyo will start collecting GST of 10% from May 27, 2024.
If you are required to register for GST, please provide your Australian Business Number (ABN) on your Klaviyo account. If applicable, please refer to our guide on how to add your ABN.
As a GST-registered business in Australia, the GST amount will appear on your Klaviyo invoice as an exempt amount not payable to Klaviyo, since you are responsible for paying this amount to the Australian Taxation Office (also known as a reverse charge).
If you are not a GST-registered business, your Klaviyo invoice will include the additional GST amount from this date.
If you do not wish to continue using Klaviyo as a result of this change, you can find out how to cancel your account.
GST and HST in Canada
Klaviyo will start collecting GST and HST in Canada from June 20, 2024.
If you are required to register for GST or HST, please provide your Canada Revenue Agency (CRA) program account number (i.e., “123456789RT0001”) in your Klaviyo account in the Billing Preference page using the tax type “Canada GST/HST.” If applicable, please refer to our guide on how to add your tax ID.
As a GST- or HST-registered business in Canada, the GST or HST amount will appear on your invoice as an exempt amount not payable to Klaviyo, since you are responsible for paying this amount to the Canadian Revenue Agency (also known as a reverse charge).
If you are not a GST- or HST-registered business, your Klaviyo invoice will include the GST or HST amount as an additional line item from this date.
If you do not wish to continue using Klaviyo as a result of this change, you can find out how to cancel your account.
VAT in the EU
Klaviyo will start collecting VAT in the EU from July 1, 2024.
If you are required to register for VAT, please provide your European VAT number in your Klaviyo account. If applicable, please refer to our guide on how to add your European VAT number.
As a VAT-registered business, the VAT amount will appear on your Klaviyo invoice as an exempt amount not payable to Klaviyo, since you are responsible for paying this amount to the relevant tax authority (also known as a reverse charge).
If you are not a VAT-registered business, your Klaviyo invoice will include the additional VAT amount from this date.
If you have any further questions, please contact us via support or reach out to your dedicated Klaviyo contact.
VAT in the UK
Klaviyo will start collecting VAT in the UK from October 1, 2024.
If you are required to register for VAT, please provide your European VAT number in your Klaviyo account. If applicable, please refer to our guide on how to add your UK VAT number.
As a VAT-registered business, the VAT amount will appear on your Klaviyo invoice as an exempt amount not payable to Klaviyo, since you are responsible for paying this amount to HMRC (also known as a reverse charge).
If you are not a VAT-registered business, your Klaviyo invoice will include the additional VAT amount from this date.
If you have any further questions, please contact us via support or reach out to your dedicated Klaviyo contact.
Additional resources
- How to find and update your tax ID in Klaviyo
Learn how to add and update tax ID in Klaviyo. After you add this information, you will be able to view your tax ID on all future billing invoices. Tax ID may be required in some cases.
- How to update your credit card information
Learn how to update the credit card information associated with your account. Note that Klaviyo does not support multiple credit cards in a single account.
- How Klaviyo billing works
Learn how Klaviyo bills customers for Profiles and Emails, Mobile Messaging, Reviews, Advanced Klaviyo Data Platform (formerly “CDP”), Marketing Analytics, Customer Hub, Helpdesk, and Customer Agent.