Billing / Sales Tax / VAT FAQ
We have recently implemented changes to our billing process to comply with global tax regulations. This FAQ addresses common questions and concerns regarding these changes.
Why are you collecting sales tax / VAT now?
We weren't initially required to collect sales tax/VAT until reaching certain thresholds, typically defined by the number of customers in a jurisdiction or sales volume. Implementing sales tax is resource-intensive, and when we launched two years ago, we weren't sure if the idea of paid search would take off. We decided to postpone the implementation of sales tax and instead focus on developing our product. Fortunately, Kagi has been successful, and due to our growth, we are now legally required to collect sales tax/VAT in many jurisdictions.
Will I be charged more than I was previously?
We are now collecting sales tax / VAT. If you are in an affected jurisdiction, the correct amount of sales tax/VAT is automatically added to your renewal in order to comply with tax laws.
When will this sales tax / VAT collection start?
- New users: April 11th, 2024.
- Existing users: On the first subscription renewal on/after April 21st, 2024.
How do you determine what tax percentage to charge me?
We rely on the billing address you provide at the time of your subscription purchase.
What information is needed to accurately calculate sales taxes?
Only the country and, if tax rates vary within the country, the state or zip code as well.
Why does my receipt say the seller is “Kagi by Reach US”?
To efficiently handle the complexity of collecting sales tax globally, we have partnered with Reach as our Merchant of Record. They act as a reseller of Kagi's services, allowing them to manage sales tax / VAT on our behalf.
I see a charge in my bank statement from “RCH-KAGI.COM” or “RCH-KAGI”, is that a legitimate charge by Kagi?
Yes, this is how charges made by Reach on behalf of Kagi will show up in your bank statement. You may also see a temporary preauthorization charge of $1 USD or $0 USD.
This was a part of migration and is simply to confirm the validity of your credit card details and will disappear within a day or two.
What if where I live there is no tax for digital services?
Your renewal cost will remain unchanged.
I’m a tax-exempt entity, can I waive the tax charge?
Please enter your tax ID in the billing portal and depending on the jurisdiction taxes may be automatically waived going forward. You may need to include the two-letter country code before your tax ID.
Is there a way to view my upcoming invoice?
Yes, please visit the billing portal.
My billing address is outdated. How can I update it?
Please visit the billing portal.
Why is my account showing “no invoice history”?
This was a result of a migration to a new merchant of record. We can still get your past invoices on demand, let us know which ones do you need by emailing support@kagi.com.
Why am I unable to add prepaid credit to my account?
This restriction happens when you haven't entered a billing address and the system is unable to determine the appropriate tax for your subscription. To remove the restriction, please select a country or region using the dropdown in the add prepaid credit page.