Main menu

Sales to customers in the European Union

This page is intended for paying customers based inside the EU, but outside the UK. It explains how we comply with VAT regulations in your country and how we charge taxes based on your location.

Loco is a 'digital service'. Recent EU regulations require that we charge VAT in your country, not in the UK where we're based. This means our Euro prices are subject to ten different rates of tax. We don't want this to be your problem, so our pricing model is designed to minimise how it affects you.

Universal pricing

Loco operates universal pricing across the EU for all our subscription plans. This means that every EU country pays the same Euro price for the same product. Tax is never suddenly added to advertised prices when you get to the checkout.

We think this is the fairest approach for the vast majority of you.

VAT inclusive prices

We calculate the VAT included in your subscription fee and pay it back to your country at the end of each quarter. This amount is reflected in your invoices, but is not added to the price you pay.

For example: If you're in Luxembourg, an invoice for €6,95 will show that €1,01 was included as VAT. A customer in Hungary will see that €1,48 was included as VAT, but both of you will pay €6,95 regardless. We'll take the hit on the difference, and we can deal with that.

VAT invoices can be downloaded from your account dashboard. If you think the wrong tax has been calculated for your country please let us know as soon as possible. It won't change what you pay, but we might need to alter the taxes we pay back to the EU.

VAT-registered businesses

Our universal pricing is designed for customers that are private individuals. This is what we assume you are unless you tell us you're a VAT-registered business. You can tell us you're a business by getting in touch or by filling in your VAT details from our payment screens.

If you provide us with a VAT registration number we will charge zero tax on sales to you. However, due to our universal pricing policy, the total amount you pay will remain the same. If your company has a EU VAT number, please read how we handle business-to-business sales and provide the relevant details before making any payments.

Your location

It's very important that we know what country you're normally based in. We're based in the UK, but we pay back VAT charges to your country, not ours. This is the law regarding taxable 'place of supply', and it's strict. We face unlimited fines if we get your location wrong.

Before you subscribe we will simply ask you what country you're based in. This will determine that you pay in Euros and also calculate the correct rate of tax. If you're logging in from a different country you will still be able to proceed, but we may have to contact you later.

If we establish from your payment details that we've charged the wrong tax (or charged it in the wrong country) we will amend your invoice automatically. This won't affect what you pay, due to our universal pricing policy.

Our records

We respect your privacy and don't want to collect unnecessary information about you. However, the law says we have to collect (and store for ten years) multiple pieces of non-contradictory evidence of your location. To achieve this we record your IP address, billing information and the country in which your credit card is registered.

We'd really rather not bother you with this, but if these bits of information don't match up, we may have to contact you to correct our records. It's perfectly reasonable to us that a French citizen could be on holiday in Italy using their Swiss partner's credit card. Unfortunately this is not the view of the tax authorities.

Rest of Europe

If you're in a European country that's outside the EU VAT area, you may still see prices in Euros. We thought you'd prefer to see Euros over US Dollars, but we can charge you in dollars if you prefer.

Our dollar prices are slightly lower than the Euro prices as we don't charge taxes on exports out of the EU. If you'd prefer to pay the dollar price let us know before you upgrade and we'll switch your account currency.

Tax exemptions and special rates

If you've been charged VAT, but are exempt for some reason, please contact us to resolve the matter.

We calculate VAT charges based purely on your country, but we know that some regions have special rates that differ from the rest of their country. We can't identify these cases until after you've paid, so you may see that invoices are adjusted after payment.

A note about "Brexit"

Regardless of the Brexit process, the information on this page remains true and current while the UK is still an EU member, and quite possibly will remain so after we've left.

See also