VAT FAQ

What is VAT?

VAT (Value Added Tax) is a consumption tax applied to goods and services in many countries. It is collected by the seller at the point of sale and remitted to the relevant tax authority. The rate varies by country and region.

As a US-based company selling digital products globally, Topaz Labs is required to collect VAT in certain countries where customers are located, in compliance with local tax regulations.

Why was VAT added to my order?

VAT is applied based on the billing address associated with the payment method used at checkout. If your billing address is in a country where Topaz Labs is required to collect VAT, it will be added automatically at checkout and on subscription renewals.

This applies to customers in EU member states and the United Kingdom. VAT is not charged based on where you are physically located at the time of purchase, but on the billing address on file.

Which countries does Topaz Labs collect VAT in?

Topaz Labs currently collects VAT for customers with billing addresses in the following locations:

United Kingdom (including Northern Ireland):

• United Kingdom (GB) - as of July 2026
• Northern Ireland (XI) - follows UK VAT rules for goods, EU VAT rules for certain goods

How do I get a VAT invoice?

Your order confirmation email includes an invoice. If you need a copy of your invoice you can access it from your Studio Account Page.

If you require your VAT number or company name added to it, please contact our support team at help@topazlabs.com with your order number and the details you need included.

EU VAT Questions

How does EU VAT work on Topaz purchases?

Topaz Labs collects EU VAT under the One Stop Shop (OSS) Non-Union scheme (EU VAT ID: EU372078785). VAT is applied at the rate applicable in your country, in compliance with EU Directive 2006/112/EC.

Your charges remain in USD. VAT is calculated on the USD amount and displayed on your invoice.

Do EU VAT rates vary by country?

Yes. EU VAT rates are set by each member state and vary by country. Topaz Labs applies the standard VAT rate for your country based on your billing address. For example, Germany applies 19%, France applies 20%, and Hungary applies 27%. You can check your country's current rate on the European Commission website.

I have a valid EU VAT number. How do I apply it?

You can enter your EU VAT number at checkout in the VAT field. Make sure to include your 2-letter country code prefix before the number. For example:

• Germany: DE123456789
• France: FR12345678901
• Spain: ESA1234567B

Your VAT number will be validated against the VIES (VAT Information Exchange System) database.

If it passes validation, the reverse charge mechanism will apply and VAT will show as 0% on your invoice, as the tax liability is transferred to you as the business customer.

What is the reverse charge mechanism?

The reverse charge mechanism applies to B2B (business-to-business) transactions within the EU. When a valid VAT number is confirmed, the responsibility for accounting for VAT shifts from the seller (Topaz Labs) to the buyer (your business). This means VAT will show as 0% on your invoice, and you are responsible for self-assessing and reporting the VAT in your own country.

If your VAT number does not pass VIES validation, VAT will be charged at the standard rate for your country as a B2C (business-to-consumer) transaction.

My EU VAT number was rejected at checkout. What do I do?

First, double-check that your VAT number includes the correct 2-letter country code prefix (e.g. DE for Germany, FR for France). The format must match exactly.

If the number is correct and still not being accepted, this may be because VIES - the EU VAT validation server - is temporarily down. This is a known issue with the VIES system and is not something Topaz Labs can control.

You have two options:

1. Wait a little while and try again when the server is back up.
2. Contact our support team at help@topazlabs.com with your VAT number and billing address and we will update it on our end manually.

You can check the current status of VIES at VIES VAT number validation.

I forgot to enter my VAT number at checkout. Can I add it now?

Yes, but you will need to contact our support team at help@topazlabs.com. Please include your order number, your EU VAT number (with country code prefix), and your billing address.

Please note: we can add your VAT number to your account and invoice records, but we cannot modify the prices on an existing invoice. If the incorrect VAT amount was charged and a refund is needed, we will issue a VAT credit note for the difference. The original invoice remains valid.

UK VAT Questions

Why was 20% VAT added to my UK order?

As of July 2026, Topaz Labs is required to collect VAT at the standard UK rate of 20% on all subscriptions for customers with a UK billing address, in compliance with UK tax regulations. VAT is applied automatically at checkout and on all subscription renewals.

This applies to both new purchases and existing subscriptions renewing on or after July 2026.

Why does my VAT show in GBP when the rest of my invoice is in USD?

If your billing address is in the United Kingdom, VAT is charged at the standard rate of 20 percent. UK tax rules require that the VAT portion of your invoice be shown in GBP, even though the product price and total are listed in USD. This applies to both new purchases and subscription renewals.

To calculate the VAT amount in GBP, we use the official monthly exchange rate published by HMRC through the UK Trade & Tariff service. This is an approved rate source under UK regulations. The same exchange rate used on your original invoice is also used on any related credit notes or adjustments.

I have a valid UK VAT number. How do I apply it?

You can enter your UK VAT number at checkout in the VAT field. Make sure to include the GB country code prefix before your number. For example: GB123456789.

Your VAT number will be verified against the UK VAT register. If it qualifies for VAT treatment on cross-border business transactions, your account will be updated accordingly.

If you forgot to enter your VAT number at checkout, please contact our support team at help@topazlabs.com with your order number, your UK VAT number, and your billing address.

I forgot to enter my UK VAT number at checkout. Can I get a refund for the VAT charged?

Please contact our support team at help@topazlabs.com with your order number, your UK VAT number (with GB prefix), and your billing address. We will review your account.

Please note: we can add your VAT number to your account and invoice records, but we cannot modify the prices on an existing invoice. If the VAT was incorrectly charged and a refund is applicable, we will issue a VAT credit note for the amount. The original invoice remains valid.

Is VAT charged on subscription renewals?

Yes. Once VAT applies to your account based on your billing address, it will continue to be applied on all subscription renewals at the applicable rate.

VAT Credit Notes

What is a VAT credit note?

A VAT credit note is an official document issued by Topaz Labs to adjust or reverse a VAT charge from a previous invoice. It is the correct way to handle VAT corrections under both EU and UK tax regulations.

A credit note does not change the original invoice. It is a separate document that records the adjustment. The original invoice remains valid.

When would I receive a VAT credit note?

You may receive a VAT credit note if:

• VAT was charged on your order but should not have been (e.g. you have a valid VAT number that qualifies for the reverse charge)
• An error was made in the VAT calculation on your invoice
• You are entitled to a VAT refund for another qualifying reason

Can you just change the price on my original invoice instead?

No. Under both EU Directive 2006/112/EC and UK VAT regulations, original invoices cannot be modified once issued. A VAT credit note is the legally correct way to handle adjustments. The credit note will reference your original invoice and clearly state the VAT amount being credited.

How long does a VAT refund take?

Once a credit note has been issued, refunds typically take 5 to 10 business days to appear on your statement. If it takes longer, please contact your bank for assistance. The timing may vary depending on your payment method and financial institution.

Can I get a VAT refund?

If VAT was incorrectly charged on your order, please contact our support team at help@topazlabs.com. We will review your account and issue a VAT credit note if applicable.

Please note: while we can add your VAT number or company information to an invoice, we cannot modify the prices on an existing invoice. If a VAT adjustment is needed, a credit note will be issued for the VAT amount. The original invoice remains valid.

Still Have Questions?

If your question is not covered here, please contact our support team at help@topazlabs.com.

Include your order number, billing address, and any relevant VAT or tax identification numbers so we can assist you as quickly as possible.