What are VAT and GST/HST?
VAT (Value Added Tax) in the European Union (and other countries) and GST/HST (Harmonized Sales Tax) in Canada are consumption taxes applied to goods and services. See this article for more specifics on GST/HST.
They’re similar to sales tax in the United States. Depending on your location, these taxes may be added to your invoice, or you may be responsible for reporting them yourself.
What changed?
We recently registered for VAT in the European Union and other countries. That means we’re now required to apply VAT rules when billing customers.
This is a normal step for SaaS companies as they grow internationally.
Why am I now seeing VAT on my invoice?
If you’re located in the EU or a country that has similar sales tax and haven’t provided a valid VAT ID, we’re required to add VAT based on your country’s rate.
Nothing about our pricing has changed - this is a tax requirement, not a price increase.
I’m a business — why am I being charged VAT?
Most likely, we don’t have your VAT ID on file yet, or the one we have isn't valid.
👉 Add your VAT ID by going to your team's Billing page and selecting the Open Customer Portal link.
Select "Update information":
Add or update your VAT number:
Once a valid VAT ID is on file:
VAT will no longer be charged
Your invoices will use the reverse charge mechanism
What is the reverse charge mechanism?
This is a standard EU rule for B2B services. Note other countries my vary on this.
Instead of us charging VAT, you are responsible for reporting and accounting for it locally.
What this means for you:
No VAT is added to your invoice
You handle VAT reporting in your own country
What you’ll see on your invoice:
“VAT reverse charged under Article 44 of the EU VAT Directive.”
What VAT rate do you charge?
If VAT applies, it’s based on your country’s rate. For example:
Poland: 23%
Germany: 19%
France: 20%
Will this affect my pricing?
No - our pricing hasn’t changed.
VAT is added on top only when required by law.
I already paid VAT, but I have a VAT ID — what now?
Once we have your VAT ID, future invoices will not include VAT.
If you think VAT was charged incorrectly, reach out, and we’ll take a look.
Quick summary
We’re now EU VAT registered
We have registered and will continue to register in other countries as well.
VAT applies if no valid VAT ID is provided
Businesses can avoid VAT via reverse charge
This is a standard compliance step for SaaS companies
Need help?
If you have questions or want to add your VAT ID, just contact Glide support - we’re happy to help.
This article is provided for informational purposes only and does not constitute legal or tax advice. For authoritative guidance, refer to your accounting or legal advisor or your government's website.