Sales Tax / VAT FAQ
We have recently implemented changes to our billing process to comply with global tax regulations. This FAQ addresses common questions and concerns regarding these changes.
We are now collecting sales tax / VAT. If you are in an affected jurisdiction the correct amount of sales tax/VAT is added to your renewal in order to comply with tax laws.
We were not required to collect them initially, until hitting certain threshold. Due to Kagi's growth, we are now required by law to collect sales tax / VAT in many jurisdictions.
To efficiently handle the complexity of collecting sales tax globally, we have partnered with Reach as our Merchant of Record. They act as a reseller of Kagi's services, allowing them to manage sales tax / VAT on our behalf.
Yes, this is how charges made by Reach on behalf of Kagi will show up in your bank statement. You may also see a temporary preauthorization charge of $1 USD or $0 USD. This is simply to confirm the validity of your credit card details and will disappear within a day or two.
