VAT & Currency: Why Your VPN Price Differs From the Ad
VPN providers display pre-tax USD pricing on their deal pages. What you actually pay depends on your country's VAT/GST rules, the currency your card is billed in, and your card's foreign transaction fee. Here's how these variables affect your actual cost.
VAT by Region
| Region | VAT/GST Rate | Effect on $3.49/mo NordVPN | Effect on $2.49/mo Surfshark |
|---|---|---|---|
| United States | 0% (no federal VAT) | $3.49 | $2.49 |
| European Union | 17–27% depending on country | $4.07–4.43 | $2.91–3.16 |
| United Kingdom | 20% | $4.19 | $2.99 |
| Australia | 10% GST | $3.84 | $2.74 |
| Canada | 5% GST + provincial | $3.66–4.00 | $2.61–2.86 |
| India | 18% GST | $4.12 | $2.94 |
Currency Conversion Costs
When a VPN charges in USD and your card is in another currency, your bank applies an exchange rate plus potentially a foreign transaction fee (typically 1–3% on cards without FX waivers). This adds to your effective cost beyond just the VAT. Solutions: pay with a credit card that has no foreign transaction fee (Schwab, Capital One Venture, Chase Sapphire) or check if the VPN offers local currency billing.
Local Currency Billing
NordVPN and Surfshark both offer local currency billing in major markets (EUR, GBP, AUD, CAD). Paying in local currency locks in the price without exchange rate exposure and avoids your bank's conversion markup. The local currency price may or may not be favorable depending on when the rate was set — compare the local currency price against your card's conversion rate to determine which is better for your specific purchase.
NordVPN — Check Local Currency Option
$3.49 USD/mo2-yr plan · 10 devices · 30-day money-back guarantee
NordVPN offers local currency checkout in major markets. Check their deal page geo-targeted to your location for GBP/EUR/AUD pricing.
Get NordVPNSurfshark — Check Local Currency Option
$2.49 USD/mo27-mo plan · Unlimited devices · 30-day money-back guarantee
Surfshark offers local currency checkout. Compare the local rate to your card's USD conversion to find the better deal.
Get SurfsharkFrequently Asked Questions
Why is my VPN bill higher than the advertised price?
Two common reasons: (1) VAT/GST applied at checkout for your country — typically 10–27% depending on jurisdiction. (2) Foreign transaction fee from your bank — 1–3% on cards without FX waivers. The sum of these can add 15–30% to the advertised pre-tax USD price.
Should I pay for a VPN in USD or my local currency?
Depends on your card's exchange rate and FX fee policy. If your card has no foreign transaction fee and a competitive exchange rate, USD may be better. If the VPN's local currency pricing matches the current exchange rate (or is favorable), local currency removes exchange rate risk. Compare at the time of purchase.
Do all countries pay VAT on VPN subscriptions?
No — the US has no federal VAT. Most EU countries, the UK, Australia, Canada, and India apply digital services tax (VAT/GST) to VPN subscriptions. The rate varies by country. Check your country's current digital services tax rules for the applicable rate.