This article was first published on The AI Till: https://theaitill.com/answers/do-ai-subscriptions-charge-uk-vat .

Usually, yes. GOV.UK says digital services supplied to UK consumers are liable to UK VAT, so overseas AI companies such as Anthropic, Canva and Grammarly add 20% VAT for UK customers. App Store prices already include VAT. If you're VAT registered, some providers let the reverse charge apply when you add your VAT number, but Canva still charges UK VAT.

How it works

You are What you see What to do

A consumer or non-VAT-registered sole trader 20% UK VAT added, or included in App Store prices Pay it; keep the receipt for your expense records

A VAT-registered business buying on the web Depends on the provider: some remove VAT when you add a VAT number, others such as Canva still charge it Reverse charge if no VAT was charged; otherwise reclaim the VAT shown on the invoice as input tax

Buying through Apple or Google Price includes VAT Apple or Google accounts for the VAT; you get a receipt, not…