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Is there VAT on ChatGPT in the UK?
Short answer
It depends on what your invoice shows and whether you're VAT registered. OpenAI lets you add a VAT number to your billing details, and it then appears on future invoices. If your business buys services from outside the UK, HMRC's reverse charge rule usually applies, so you account for the VAT yourself on your return. Ask your accountant to confirm.
Add your VAT number to OpenAI
OpenAI's help centre says:
- Personal ChatGPT plans: Settings, then Billing (or Account, then Payment, then Manage), then edit your billing information and add your Tax ID.
- ChatGPT Business: Workspace settings, then Billing, then Settings, then Edit. Only workspace owners see this.
Changes only apply to future invoices. To fix a past invoice, contact OpenAI Support with the invoice number; OpenAI says a reissue isn't guaranteed.
The reverse charge
GOV.UK says that if your business buys services from outside the UK, the reverse charge applies: you work out the VAT due, include it on your VAT return as if you'd supplied the service, and reclaim the same amount. For most businesses that nets to nothing, unless you're partly exempt.
GOV.UK also lists "electronically supplied services" among the types with different rules. How a subscription like ChatGPT is treated can depend on how OpenAI bills you, so check the invoice and get your accountant to confirm.
If you're not VAT registered
You can't reclaim VAT. Pay what the checkout shows and keep the invoice as a business expense record. See can I claim ChatGPT as a business expense? Not sure whether you should register? Read should I register for VAT?
Related questions
Is OpenAI VAT registered in the UK?
We couldn't find a statement from OpenAI on this. Look at the invoice in your billing portal: it shows OpenAI's details and any tax charged.
What about OpenAI's VAT exemption request?
OpenAI's help article on tax exemptions covers US sales tax exemption certificates, not UK VAT.
Is ChatGPT tax deductible?
If you use it for your business, the subscription can be an allowable expense. Claim only the business share.
Sources
- OpenAI Help: updating billing information, Tax ID and VAT ID
- GOV.UK: VAT on services from abroad
- GOV.UK: place of supply of services (VAT Notice 741A)
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.
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