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.
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.
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.
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.