United Arab Emirates Tax Information

Value Added Tax (VAT)

As of 1 January 2018, the United Arab Emirates, which forms part of the Cooperation Council for the Arab Gulf States (GCC), introduced a Value Added Tax (VAT) at a rate of 5%. The UAE coordinates VAT implementation with other GCC countries because of the connection with them through the economic agreement between the GCC states and the GCC Customs Union. The VAT is levied on the import and supply of goods and services at each stage of production and distribution, and includes the services provided by DigitalOcean in the United Arab Emirates.

On 1 May 2019, DigitalOcean began charging this VAT for users with a tax location of United Arab Emirates. The change doesn’t affect business-to-business sales. In these cases, the reverse charge mechanism will be in effect.

How is my tax location determined?

Your tax location is typically based on your account address, which is initially set to the payment address of your primary payment method when you sign up. In some locations, we are required by law to consider other account details, like other payment addresses or IP addresses.

How can I change my tax location?

You can update your account address and view your account’s tax location and rate at any time on the billing page. If you’ve set your account address correctly but your account’s tax location is still not what you expect, please contact support so we can correct it.

Why is my invoice in USD? Can I get an invoice in another currency?

Because USD is currently the only currency we can accept for payments, all invoices are in USD. We cannot provide invoices in other currencies. Learn more about invoices.