Understanding tax with Klaviyo

You will learn

Learn how Klaviyo calculates sales tax, value-added tax (VAT), and goods and services tax (GST), where to view these taxes, and how your tax registration affects your invoices.

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:

1. Click the name of your organization in the bottom left corner.
2. Click Billing.
3. 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:

1. Navigate to Billing.
2. Click Payment history (or Payments & Invoices if that tab appears in your account).
3. Click Download for the invoice you want to review.

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

To view estimated tax before changing a self-serve plan, follow these steps. You need permission to manage billing to complete a plan change. If your plan is manually billed or checkout directs you to your Klaviyo representative, contact them for help changing your plan.

1. Navigate to Billing.
2. On the Overview tab, click Change plan.
3. Select the plan you want to change to. Plan prices exclude tax.

4. Click Continue to payment.
5. Review your billing address and the estimated tax in the checkout summary before confirming the change.

If your checkout shows Today's total, the estimated tax applies to the amount due for this plan change. This can differ from your recurring monthly charge. Monthly plan total excludes tax.

If you are ready to change your plan, click Confirm and Pay (or Confirm if no payment is required). To view the estimate without changing your plan, click Cancel instead.

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 began collecting 10% GST in Australia on 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.

If you are GST registered in Australia and provide a valid ABN in Klaviyo, GST is not payable to Klaviyo. Your invoice can show an exempt GST amount. For imported services, reverse-charge GST applies to purchases for your Australian business that are not wholly for a creditable purpose, such as purchases relating to input-taxed sales. A purchase wholly for a creditable purpose does not trigger reverse-charge GST.

If you are not GST registered, or have not provided a valid ABN in Klaviyo, your invoice includes GST as an additional charge.

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 began collecting GST and HST in Canada on June 20, 2024.

If you are registered for GST or HST, add your Canada Revenue Agency (CRA) program account number (e.g., 123456789RT0001) under Billing > Preferences using the tax type Canada GST/HST. See our guide on how to add your tax ID.

If you provide a valid GST/HST registration number in Klaviyo, GST/HST is not payable to Klaviyo. Your invoice can show an exempt amount. This does not automatically mean you owe that amount to the Canada Revenue Agency. Self-assessment of GST/HST on imported services generally applies when you use them less than 90% in commercial activities (100% for financial institutions).

If you are not registered for GST or HST, or have not provided a valid GST/HST registration number in Klaviyo, your invoice includes GST or HST as an additional line item.

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 began collecting VAT in the EU on 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.

If you are VAT registered and provide a valid European VAT number in Klaviyo, VAT is not payable to Klaviyo. Your invoice can show an exempt VAT amount. You are responsible for accounting for VAT with the relevant tax authority under the reverse-charge rules.

If you are not VAT registered, or have not provided a valid European VAT number in Klaviyo, your invoice includes VAT as an additional charge.

If you have any further questions, please contact us via support or reach out to your dedicated Klaviyo contact.

VAT in the UK

Klaviyo began collecting VAT in the UK on October 1, 2024.

If you are registered for VAT in the UK, provide your UK VAT number in Klaviyo. See our guide on how to add your UK VAT number.

If you are VAT registered and provide a valid UK VAT number in Klaviyo, VAT is not payable to Klaviyo. Your invoice can show an exempt VAT amount. You are responsible for accounting for VAT to HMRC under the reverse-charge rules.

If you are not VAT registered, or have not provided a valid UK VAT number in Klaviyo, your invoice includes VAT as an additional charge.

If you have any further questions, please contact us via support or reach out to your dedicated Klaviyo contact.

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