Taxes, VAT and invoices
ScreenshotOne prices don’t include taxes. Our billing provider, Paddle, is the merchant of record: Paddle sells the subscription to you, issues your invoices, and calculates and collects VAT, GST or sales tax where the law requires it.
The tax on your payments depends on two things: the country of your billing address and whether you added a valid VAT or tax number. You can see your next payment, including tax, on the billing page in the dashboard.
Tax rules by region
Section titled “Tax rules by region”United Kingdom
Section titled “United Kingdom”Paddle is a UK company, so UK businesses are charged 20% VAT even with a valid VAT number. Reverse charge doesn’t apply to purchases from a UK supplier.
If your business is VAT-registered, you can reclaim the VAT as input VAT in your VAT return. Use the Paddle invoice that shows your VAT number.
European Union
Section titled “European Union”With a valid EU VAT number, no VAT is charged. The purchase falls under the reverse charge, and you account for VAT in your own VAT return.
Without a VAT number, the VAT rate of your country is charged.
Other countries
Section titled “Other countries”Local tax, such as GST or sales tax, may be charged depending on your country. If your business is tax-registered, add your tax number. In some countries, this removes the tax.
Add your VAT or tax number
Section titled “Add your VAT or tax number”- Open the company page in the dashboard. Only organization owners and admins can change billing details.
- Enter your company name, tax or VAT number, and legal address. The country must match the country where your business is registered. A VAT or tax number also requires address line 1 and a region.
- Save. The company page shows how tax applies to the country you selected.
Changes apply to your future payments and invoices. Past payments aren’t recalculated automatically.
If the number isn’t valid, Paddle charges tax as for a consumer.
Fix a past invoice
Section titled “Fix a past invoice”If an earlier invoice has the wrong address, is missing your VAT number, or was charged tax that shouldn’t apply, contact us with the payment date and the correct details. We’ll take it up with Paddle. When a valid VAT number is added to a past payment, Paddle refunds the tax where applicable.
Frequently asked questions
Section titled “Frequently asked questions”Why was I charged VAT after I added my VAT number?
Section titled “Why was I charged VAT after I added my VAT number?”Either your business is in the United Kingdom, where VAT is always charged, or the payment happened before you added the number. Updated details apply from your next payment.
Why did the tax rate change?
Section titled “Why did the tax rate change?”The tax rate follows the country of your billing address. If you change the country, your next payment uses the rate of the new country.
Can I get an invoice for my accounting?
Section titled “Can I get an invoice for my accounting?”Yes. Every payment has an invoice on the payments page in the dashboard.