How are credits calculated and how does VAT (Reverse Charge) affect them?
Narrafix uses a credit-based pricing system. All credits and project costs inside your account are displayed in gross amounts (including 19% German VAT). The system is structured this way to ensure consistent and transparent pricing across all users.
This applies to:
- Credit purchases
- Project processing costs
- Credit deductions
💳 How VAT is handled during payment
The VAT treatment depends on your customer status:
Private customers (Germany / EU): German VAT (19%) is included in the purchase price and charged accordingly.
Business customers with valid VAT ID (Reverse Charge):
- German VAT is not charged.
- You only pay the net amount via Stripe.
- VAT handling follows EU tax regulations.
Example:
If you purchase €50 in credits (gross value displayed in your account): Under Reverse Charge, you only pay approximately €42.02 net. The VAT portion is not collected from you.
🔄 Why are credits displayed and deducted as gross amounts?
All internal pricing calculations in Narrafix are based on gross values for consistency. Even if VAT is not charged during payment (Reverse Charge), the credit balance inside your account remains structured in gross amounts. This ensures:
- Uniform pricing logic for all users
- Clear and predictable project cost calculation
- Transparent display of credit usage
Importantly, if you are billed under Reverse Charge, you are not paying VAT — you simply operate within a gross-based credit display system. If you require detailed billing information, please refer to your Stripe invoice or contact our support team.
✅ Summary
- Credits are displayed and deducted in gross values (incl. 19% VAT).
- Business customers under Reverse Charge only pay the net amount.
- VAT is handled during checkout via Stripe, not inside the credit balance system.
- There is no double taxation.