Tax & VAT

How tax is calculated

RakuWP uses Stripe Tax to automatically calculate the correct tax for every transaction. The tax rate is determined by your billing address (country) and the applicable tax regulations.

Tax is applied as exclusive, meaning it is added on top of the listed base price. For example, if a plan costs 19.90 EUR and the VAT rate is 21%, the total charge will be 24.08 EUR.

Seeing tax before you pay

On all billing pages, you will see the base price displayed prominently along with the total amount including tax shown below it. This applies to:

• The subscription overview on the billing dashboard
• The plan selection and change plan pages
• The checkout page before completing a purchase
• The credit purchase modal

This way, you always know the exact amount that will be charged before confirming any payment.

Why is my tax rate different from others?

Tax rates vary by country. For example:

If you don't see tax on your invoices, it may be because your country does not charge VAT on digital services, or because you have a valid VAT ID registered (see below).

Adding your VAT ID

If you are a business with a valid VAT identification number, you can add it during checkout. Stripe will verify your VAT ID and may apply a reverse charge (0% VAT) if applicable under EU rules.

To add or update your VAT ID:

1. During the Stripe checkout process, look for the Tax ID field.
2. Enter your VAT number (e.g., ES12345678A for Spain, DE123456789 for Germany).
3. Stripe will validate the number in real time.

Once added, your VAT ID will appear on all future invoices.

Tax on invoices

Every PDF invoice generated by Stripe includes a full tax breakdown showing the base amount, the tax rate applied, and the tax amount. These invoices are valid fiscal documents.