Why does my invoice include tax charges?

Why does my charge now include sales tax, VAT, etc?

Many Readwise customers are based in jurisdictions where the presiding governments mandate the collection of various taxes such as sales tax, value added tax (VAT), and others. Each location has its own rules about when a company needs to start collecting taxes, usually based on the total value of its sales or the number of its transactions per year or quarter. When a company crosses these thresholds, it has to start collecting taxes on behalf of the taxing authority. So if your charge previously excluded tax but now includes it, it means that Readwise has crossed a threshold in your geography.

Note that if you subscribed to Readwise through the Apple App Store, you should not see a change to your pricing as Apple was already collecting sales tax and VAT. This change only affects users who subscribed via the Readwise website.

Why does Readwise collect sales tax, VAT, etc when other similar software services don’t?

It’s hard to say without investigating the specific facts and circumstance, but it’s likely these businesses should be collecting tax but either (1) don’t realize they’re required to or (2) their operations are too small to be audited or trigger thresholds. In other words, they likely will collect tax at some point.

Why are prices listed without tax?

In some countries, it's common to include taxes in the listed prices—that's called tax-inclusive pricing. In the United States, where Readwise is based, prices are listed without tax and then added on at the end. This is known as tax-exclusive pricing.

As a U.S. company, Readwise uses tax-exclusive pricing by default. Further, the website typically does not know where you are geographically located, so the pricing page is unable to determine any taxes that might be required until you provide the necessary information. Once you provide your geographical location and business status, the tax to be collected will be presented on your invoice as illustrated below.

How is the applicable tax determined?

Your address and business status determines which tax and rate applies to your Readwise invoice. Check out the list of jurisdictions to see applicable tax policies for different areas and whether you can get a tax-exemption for your business.

Where is Readwise required to collect taxes?

Readwise is currently required to collect taxes in the places listed below.

If your location isn't listed, taxes will not be collected as part of the subscription fee unless new laws or rules require the company to do so. We strive to proactively communicate with our customers whenever we become aware of a change that might affect you.

Australia (GST)

Readwise is required to collect Australian Goods and Services Tax (GST) for personal use. If you're using Readwise for your business and provide a valid Australian Business Number (ABN), you will not be charged GST on subsequent invoices.

Canada (GST, QST, HST, PST)

In Canada, Readwise is required to collect different types of tax depending on your province. Here's how it works:

• British Columbia: Readwise is required to collect GST/HST or BC PST for personal use. Businesses can get exempted from GST/HST by providing a valid Canadian Business Number, but you'll still get a BC PST charge.
• Quebec: Readwise is required to collect GST/HST or QST for personal use. Businesses can get exempted from both taxes by providing valid QST and Canadian Business Numbers.
• All other Canadian Provinces: Readwise is required to collect GST/HST for personal use. Businesses can get exempted from this by providing a Canadian Business Number.

EU (VAT)

Readwise is required to collect VAT in the EU. Businesses can be exempted from this by providing a valid VAT Number.

Norway (VAT)

Readwise is required to collect VAT in Norway. Businesses can be exempted from this by providing a valid VAT Number.

Switzerland (VAT)

Readwise is required to collect VAT in Switzerland, whether you're using Readwise for business or personal use.

United Kingdom (VAT)

Readwise is required to collect VAT in the UK. Businesses can be exempted from this by providing a valid VAT Number.

United States (U.S. Sales Tax)

Readwise is required to collect sales or other taxes in the following U.S. locations:

• District of Columbia
• Hawaii
• Kentucky
• Maryland
• Ohio
• Philadelphia
• Utah

What happens if I update my address?

Changing your address in your billing information may change the tax rate on your future invoices. This is because tax rates are based on your location. If you move from a place with a 10% tax to a 20% tax (or vice versa), your next invoice will reflect that. Just make sure to update your address before your next billing cycle to see the change.

How can I get tax-exempted if I’m using Readwise for business?

In some places, businesses are exempted from paying for value added tax (VAT).

If you’re subscribing to Readwise for a business use in jurisdictions where business are tax-exempt, add your Tax ID to your billing information to validate that you aren’t required to pay for those taxes.

Where can I update my billing information?

To update your billing information, go to your account settings. Click on "Manage subscription," which will take you to our payment processor (Stripe) billing page.

• To change your credit card information, click on "Add payment method."
• To change your address or add a Tax ID, click on "Update information."

How does Readwise handle tax exemptions?

If you have a tax exemption certificate, send an email to hello@readwise.io with your certificate and the Readwise team will take care of it for you.

How can I get a tax refund?

If you have been wrongly charged for tax, send an email to hello@readwise.io with the details and any supporting documents and the Readwise team will take care of it for you.