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Do AI subscriptions like Claude, Canva and Grammarly charge UK VAT?
Short answer
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, add your VAT number and the reverse charge usually applies instead.
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 | Add your VAT number at checkout | Reverse charge: account for the VAT on your return and reclaim it |
| Buying through Apple or Google | Price includes VAT | Apple or Google accounts for the VAT; you get a receipt, not a VAT invoice from the AI company |
Many web price lists, including Claude's and ElevenLabs', say prices exclude tax.
Tips
- Subscribe on the web, not in an app, if you need a proper VAT invoice.
- Add your VAT number before your first payment; changes usually apply only to future invoices.
- Ask your accountant how to treat each supplier on your VAT return.
ChatGPT has its own page: is there VAT on ChatGPT?
Our UK AI price table shows whether each listed price includes VAT.
Related questions
Does Canva charge VAT in the UK?
Yes for UK consumers. Businesses can add a VAT number in billing settings.
Can I reclaim VAT on Claude?
Only if you're VAT registered and it's for business use. See should I register for VAT?
Sources
- GOV.UK: VAT rules for supplies of digital services to consumers
- GOV.UK: VAT on services from abroad
- Anthropic: Claude pricing
Checked 17 October 2026. Rules and prices change, so check the source before you rely on it. This is general information, not legal, tax or financial advice.
More on ai costs and free plans
- Are AI tools free?
- Can ChatGPT Plus make videos?
- Can I claim ChatGPT as a business expense in the UK?
- Can more than one person use ChatGPT Plus?
- Does ChatGPT Plus have usage limits?
- Does Claude have a free trial or a family plan?
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