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Delaware C-Corporation · Reg. No. 7597749

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  1. Legal
  2. Tax Policy
Tax Transparency

VAT & Sales Tax Policy

Clear information about how VAT and sales tax are calculated for your Profio subscription, including business exemptions and invoice details.

Last updated: February 15, 2026

Tax Collection Overview

Automatic Calculation

Tax calculated based on your location

Stripe Tax Integration

Accurate rates for 240+ countries

Business Exemptions

VAT ID exemption for B2B sales

Instant Invoices

Download tax invoices immediately

How Tax Collection Works

Automatic Tax Calculation

Profio automatically collects VAT (Value Added Tax) or sales tax based on your billing address. Tax is calculated automatically by Stripe Tax, which maintains up-to-date rates for over 240 countries and jurisdictions worldwide.

Location-Based Tax Rates

The tax rate applied to your subscription is determined by your billing address (the address associated with your payment method). If you move to a different country or region, your tax rate will automatically update at your next billing cycle.

Business vs. Consumer

Tax treatment differs for business customers (B2B) and individual consumers (B2C). Business customers with a valid VAT ID may qualify for VAT exemption under the reverse charge mechanism (within the EU) or zero-rated supply (UK).

Tax Rules by Region

European Union (EU) - VAT

VAT Rates

VAT rates vary by EU member state, ranging from 15% to 27%. The rate applied is based on your billing address country (customer's location, not supplier's location).

Price Display

For EU customers, prices displayed on our website INCLUDE VAT. The final price at checkout will show the VAT amount separately for transparency.

Business VAT Exemption (B2B Reverse Charge)

EU businesses with a valid VAT registration number can qualify for VAT exemption under the reverse charge mechanism. This means:

  • You will NOT be charged VAT by Profio (0% VAT rate)
  • You are responsible for self-assessing VAT in your own country
  • You must account for the VAT on your own VAT return (reverse charge)
  • Your invoice will state "Reverse charge applies" or similar

How to claim exemption: Enter your valid VAT ID in your account settings under Billing → Tax Information. We validate your VAT ID with the EU VIES database. Once validated, exemption applies automatically.

Example VAT Rates (Indicative - 2026)

Germany: 19%
France: 20%
Spain: 21%
Italy: 22%
Netherlands: 21%
Poland: 23%
Ireland: 23%
Austria: 20%
Hungary: 27%

Rates are subject to change by each government. Stripe Tax automatically updates rates when governments change them.

United Kingdom - VAT

Standard VAT Rate

The UK standard VAT rate is 20% on all digital services. This applies to all UK customers (both consumers and businesses unless exempt).

Price Display

For UK customers, prices displayed INCLUDE the 20% VAT. The final price at checkout shows VAT separately.

Business VAT Exemption

UK businesses with a valid VAT registration number can claim VAT exemption. Enter your UK VAT number in Account Settings → Billing → Tax Information. Once validated, you will be charged 0% VAT and your invoice will state "Reverse charge applies."

United States - Sales Tax

State-Based Sales Tax

Sales tax rates vary by state, ranging from 0% to 10%. Not all states require sales tax on digital services. Stripe Tax automatically determines which states require tax collection based on economic nexus rules.

Price Display

For US customers, prices displayed on our website EXCLUDE sales tax. Sales tax (if applicable) is calculated and added at checkout based on your billing address.

Tax-Exempt Organizations

US organizations with tax-exempt status (501(c)(3) nonprofits, government entities, etc.) can claim exemption by emailing a copy of your tax exemption certificate to billing@profio.dev. Once approved, future charges will be exempt from sales tax.

States with Nexus (Indicative)

We collect sales tax in states where we have economic nexus (based on revenue thresholds). This includes California, New York, Texas, Florida, Washington, and others. The list is updated automatically by Stripe Tax as nexus laws change.

Other Countries - GST/VAT

International Tax Compliance

For countries outside the EU, UK, and US, we collect applicable GST (Goods and Services Tax), VAT, or similar consumption taxes as required by local law. This includes:

  • Canada: GST/HST (5%-15% depending on province)
  • Australia: GST (10%)
  • New Zealand: GST (15%)
  • Switzerland: VAT (7.7%)
  • Norway: VAT (25%)
  • Singapore: GST (8%)
  • India: GST (18%)
  • And many others...

Automatic Updates

Stripe Tax maintains current tax rates for over 240 countries and automatically updates rates when governments change them. You always pay the correct rate without manual updates.

Business Customers (B2B)

How to Add Your VAT ID

  1. Log in to your Profio account
  2. Go to Settings → Billing → Tax Information
  3. Enter your VAT registration number (e.g., DE123456789)
  4. Click "Validate"
  5. Once validated, VAT exemption applies automatically to future invoices

VAT ID Validation

We validate EU VAT IDs using the EU VIES (VAT Information Exchange System) database. UK VAT numbers are validated through HMRC's validation service. Validation is instant and automated.

Reverse Charge Mechanism (EU B2B)

When two EU businesses transact, the "reverse charge" mechanism applies:

  • Profio does NOT charge you VAT (0% VAT)
  • You (the customer) must self-assess the VAT in your country
  • Report it on your VAT return under "reverse charge"
  • You can usually reclaim this VAT as input tax (net effect: zero)

Tax Exemption Certificates (US)

US businesses claiming tax-exempt status must provide a valid exemption certificate. Email your certificate to billing@profio.dev with your account email. We review and approve within 2 business days.

Profio Tax Registration Information

Our Tax Registration Details

Legal Entity: Profio Inc.

Tax Jurisdiction: United States (Federal & State)

US EIN: Available on request for enterprise customers

EU VAT Registration: Collected via Stripe Tax (OSS registration)

UK VAT Registration: Collected via Stripe Tax

VAT Moss / OSS Registration

For EU sales, we use Stripe's One-Stop Shop (OSS) registration system. This allows us to collect and remit VAT for all EU countries from a single registration, ensuring full compliance with EU VAT rules.

Tax Invoices & Documentation

Instant Invoice Access

Invoices are generated automatically after each payment and are available immediately in your account dashboard:

  1. Log in to your Profio account
  2. Go to Settings → Billing → Invoice History
  3. Click "Download PDF" for any invoice

Invoice Contents

All invoices include:

  • Invoice number and date
  • Your billing address
  • Description of service (subscription plan)
  • Subtotal (pre-tax amount)
  • Tax breakdown (VAT/sales tax rate and amount, shown separately)
  • Total amount charged
  • Payment method (last 4 digits of card)
  • Profio's tax registration details
  • For B2B reverse charge: "Reverse charge applies" statement

Invoice Retention

Invoices are available in your account for 7 years (standard tax record retention period). If your account is closed, you can request past invoices by emailing billing@profio.dev.

Invoice Email Notifications

You receive an invoice by email immediately after each payment. The email includes a PDF attachment and a link to view the invoice in your account.

Tax Compliance & Reporting

Automated Tax Compliance

Profio uses Stripe Tax for automated tax calculation, collection, and remittance. Stripe Tax:

  • Maintains accurate tax rates for 240+ countries and jurisdictions
  • Automatically updates rates when governments change them
  • Calculates nexus thresholds (economic presence requirements)
  • Files and remits taxes on our behalf
  • Provides audit trails and transaction reporting

Tax Authorities We Report To

We collect and remit taxes to the following authorities (among others):

  • European Union: EU VAT via OSS (One-Stop Shop)
  • United Kingdom: HMRC (His Majesty's Revenue & Customs)
  • United States: State tax authorities (where we have nexus)
  • Canada: CRA (Canada Revenue Agency)
  • Australia: ATO (Australian Taxation Office)
  • And 50+ other jurisdictions worldwide

Tax Audit Support

If you are audited by your local tax authority and need documentation from us, email billing@profio.dev. We can provide:

  • Full invoice history with tax breakouts
  • Transaction summaries by tax period
  • Confirmation of VAT registration numbers
  • Proof of reverse charge applicability
Questions About Tax or Invoices?

If you have questions about VAT, sales tax, invoices, or need tax documentation, our billing team is here to help.

Billing & Tax Support: billing@profio.dev

Response Time: Within 24 hours on business days

Contact Billing TeamPre-Purchase Info
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