As of 1 April 2019, the government of South Africa changed the Value Added Tax (VAT) regulations for digital services for consideration provided by foreign suppliers. Sales of digital services by foreign suppliers obliged to register for VAT must collect the relevant VAT on all sales to customers located in South Africa at the standard VAT rate of 15%.
On 1 May 2019, DigitalOcean began charging this VAT for users with a tax location in South Africa.
Tax location is determined by the origin of the last credit card added. This is the location returned by DigitalOcean’s credit card processor for the given card (not the user entered location).
For PayPal users, tax location is determined by the location returned by PayPal for the last payment.
You can change your tax location by adding a payment card with a different location origin or by making a PayPal payment with an updated location.
You may also contact support.
Because USD is currently the only currency we can accept for payments, all invoices are in USD. We cannot provide invoices in other currencies.