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VAT and taxes

How Stripe Tax handles VAT, reverse charge, and tax IDs

Gridwork uses Stripe Tax to calculate and collect VAT on every invoice. You don't configure rates yourself. Stripe looks at your billing country, your tax ID, and the type of charge, then applies the correct rate at checkout and on every renewal.

All prices in the catalog are shown net (excluding VAT). The applicable tax is added on top at checkout and itemized on the invoice.

Where you enter tax details

When you subscribe from the pricing page, Gridwork first asks for your billing address and (if you have one) your VAT ID in a short form. We save both to your billing profile at Stripe, then open the checkout with the correct tax already calculated. The address determines the tax jurisdiction; the VAT ID enables business-to-business handling. You can update either later through the Stripe customer portal under Manage billing.

You can update either field later through the Stripe customer portal under Manage billing. Changes apply to the next invoice, not retroactively.

Reverse charge for EU businesses

If you provide a valid EU VAT ID and your billing country is inside the EU but outside Germany, Stripe applies the reverse-charge mechanism. The invoice shows 0% VAT with a note that the customer is liable for the tax in their own country. You then declare and pay the VAT locally through your normal return.

For this to work the VAT ID must validate against VIES (the EU's VAT registry). Stripe checks the ID when you save it. If it fails validation, the invoice falls back to standard VAT at your local rate until you correct it.

German customers always pay German VAT, regardless of VAT ID. Reverse charge does not apply within a single country.

Customers outside the EU

If your billing address is outside the EU, Stripe applies the rules of your jurisdiction. In most cases this means no EU VAT on the invoice. Where Stripe is registered locally (for example UK VAT, Swiss VAT), the relevant tax is added at the local rate.

A valid local tax ID, where one exists, is stored on the customer record and printed on the invoice.

What invoices show

Each invoice lists every line item (plan and any add-ons), then a tax section that shows the rate applied, the taxable amount, and the tax amount per jurisdiction. The footer carries your VAT ID and ours.

If reverse charge applies, the tax line reads 0% with the legal reference noted in the invoice text.

Frequently asked

Can I get a VAT refund on past invoices? No. Tax treatment is fixed at the time the invoice is issued. Add or correct your VAT ID before the next billing date so future invoices are issued correctly.

My VAT ID isn't validating. What now? Check VIES directly to confirm it is active. New registrations sometimes take a few days to appear. Until it validates, standard VAT applies.

Do you issue paper invoices? No. All invoices are PDF and downloadable from the Stripe customer portal under Manage billing.

Still need help? Contact support

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