India GST - ZVC Inc. - billing currency is not INR
Please note that Zoom has two GST registrations in India:
- Zoom Video Communications Inc. (ZVC Inc.) -registered as a supplier of Online Information and Data Retrieval Services (‘OIDAR services’); and
- Zoom Video Communications India. (ZVC India) - registered as a regular taxpayer.
Customers that select their billing currency as INR will be supplied through ZVC India. Customers that select their billing currency as any currency other than INR will be supplied through ZVC Inc.
Note: The information below relates to supplies made through ZVC Inc. only.
What is GST?
GST is the abbreviation of Goods and Services Tax. GST is in general due when goods and/or services are sold. It applies to most goods and services that are bought and sold for use or consumption in India. It is a consumption tax because it is ultimately borne by the final consumer.
Who must pay GST?
Generally, GST is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected GST to the tax authorities.
Will ZVC Inc. charge Indian GST on its supplies?
Effective from or shortly after April 1, 2021 ZVC Inc. will be registered for GST in India as a supplier of Online Information Database Access and Retrieval (‘OIDAR’) services.
This means that if ZVC Inc. makes a supply to a business customer (B2B supply), ZVC Inc. will not charge Indian GST on the supply. However, the business customer may be required to self-account for GST under the reverse charge mechanism. A customer will be treated as a business customer if they provide a valid India GST registration number.
If ZVC Inc. makes a supply to a non-business customer (B2C supply), ZVC Inc. will charge Indian GST on its supply. A customer will be treated as a non-business customer where it does not provide a valid India GST registration number to ZVC Inc.
What is a GST registration number?
A GST registration number is a unique number that identifies that a business is registered for GST in India. ZVC Inc. will not charge Indian GST to customers that have a valid India GST registration number.
A GST registration number in India is a fifteen-digit alphanumeric number. ZVC Inc. will validate customer GST registration numbers to confirm they are valid.
Please note, ZVC Inc. will not charge any GST on any invoices issued prior to February 1, 2021.
What types of GST could be charged?
As ZVC Inc. is registered for GST in India under an OIDAR registration meant for foreign service providers, ZVC Inc. will charge Integrated Tax (IGST) on all supplies (unless a customer provides a valid GST registration number). The current rate of GST is 18%.
Does ZVC Inc. have a GST number?
Yes. ZVC Inc. is registered for GST as an OIDAR service provider.
How is Zoom determining which customers GST applies to?
If a customer ‘Sold To’ location is in India, the billing currency is not INR and the customer has not provided a valid Indian GST registration number, ZVC Inc. will charge India GST on its invoices.
How do I enter my GST number?
To enter the GST number, please follow these steps:
- Sign in to the Zoom Portal.
- In the navigation panel, click Account Management, then Billing.
- Click the Billing Information tab.
- Under Sold to Contact, choose to edit the VAT/GST number (which appears after the Sold to Contact Address field).
- Enter your GST and save.
You are required to notify us if there is a change in your GST registration status.
Why did I get a notification email if I am not located in India?
In order to ensure complete and thorough notification to any of our customers who may be impacted, we have sent the notification communication to all customers who had a “Bill To” OR “Sold To” address in India.
Why did I get a notification email if I am already charged GST?
If you are already charged GST this means you have selected your billing currency as INR and ZVC India is the entity which is making supplies to you. As such, there should be no change in the GST treatment of the supplies made to you by Zoom.
What happens if I do not have a GST number?
If a customer does not provide a valid GST number, then ZVC Inc. will charge GST on its supplies to that customer where the customer’s ‘Sold to’ address is in India.
How will the customer location be determined where the bill to and the sold to addresses are different?
ZVC Inc. will apply GST if the location of the “Sold To” contact address entered by the customer is in India and if a customer has not provided a valid GST number. This information is subject to cross-referencing against other data to verify that the ‘Sold To’ country is accurate.
Where the customer has multiple premises located in different states where the services are received by the customer, the customer should provide the GST number and address of the premises receiving the services in the ‘Sold To’ address field.
Is there a minimum threshold transaction amount before GST is applied?
No. Where a customer has not provided a valid GST number, then GST will apply to all sales of ZVC Inc. to customers in India.
What exemptions are available?
No exemptions are available to Customers who do not provide a valid Indian GST registration number. Customers who provide a valid Indian GST number will not be charged GST by ZVC Inc. Customers that provide a valid Indian GST number may be required to self-account for GST via the reverse charge mechanism.
Are there any special exemptions applicable for charitable organizations under which GST may not be charged?
Generally, GST will be charged on all taxable supplies including supplies made to charitable organizations, schools, or foundations in India unless the customer provides a valid GST registration number.
However, customers holding a Unique Identity Number (UIN) may be exempt from GST.
A Unique Identity Number is typically issued to a specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), Consulate or Embassy of foreign countries. These exemptions are uncommon. If you consider that this exemption may apply to you please provide details and evidence of this exemption chatting with Billing.
Are there any GST obligations for me as a customer?
If you have provided a valid India GST registration number no GST will be charged to you by ZVC Inc. However, you may have a requirement to report the purchase of services and account for the appropriate GST through your GST return under a reverse charge mechanism.
What if I have a GST registration number and forget to enter it?
The GST registration number can be entered at any time. If entered before the next invoice, ZVC Inc. will not charge GST on the next invoice or future invoices issued to you. No retrospective adjustments will be made where you have not provided your GST number.
Decision tree – will I be charged GST?
Every customer is unique and so are their specific tax circumstances. The above stated information should not be considered as tax advice, but as a general overview of relevant tax rules. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.
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