11 days ago
Hi,
Last month, my plan said $24-something, but I was actually charged $29. Nobody has explained why. Every time I ask, I just get sent to the receipt — which obviously doesn’t explain anything.
I haven’t changed my plan, billing country, or payment method, so why am I now being charged VAT all of a sudden?
I need a clear, direct explanation of:
1. Why VAT started being applied;
2. What changed in your billing policy;
3. Whether this is permanent.
Please don’t just link me to the invoice again — that’s not an answer.
7 Replies
11 days ago
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11 days ago
Sales tax is a government-imposed fee that businesses are legally required to collect from customers on behalf of some state state and local tax authorities - Raiway does not keep any portion of it. It a mandatory legal requirement that may apply to purchases in your location, not an optional charge we can waive.
Sales Tax varies by location, and some locations do not have Sales Tax or VAT at all for the services offered by Railway.
Status changed to Awaiting User Response Railway • 11 days ago
10 days ago
I’d like a proper explanation regarding the new VAT (or sales tax) that started being added to my Railway charges last month.
Until recently, my subscription was a flat $5, but now I’m being charged $6.15 — and nobody ever mentioned that VAT would be added.
I never received any notice or update about this change, and every time I’ve asked for clarification, I only get generic replies or links to the receipt — which do not explain anything.
To make it clear, I’d like to know:
Why VAT/sales tax only started being applied now, after months of unchanged billing.
Whether there was any official communication or announcement about this change.
Which jurisdiction is collecting this tax (EU VAT, Portuguese VAT, or something else).
Why the estimated charge shown in the dashboard does not reflect the total with VAT.
Why nobody ever stated explicitly that the difference was due to VAT, instead of giving vague or dismissive replies (someone even compared it to asking a water company why prices go up — which is not acceptable support communication).
Finally, I subscribed to a service priced at $5.
If the final amount charged increases — even due to taxes — that legally counts as a price change, and customers must be informed beforehand so they can decide whether to continue.
Please provide a proper explanation and confirmation of whether this VAT collection is official and ongoing.
Status changed to Awaiting Railway Response Railway • 10 days ago
10 days ago
We are now required to charge VAT due to updated tax regulations.
An email notification was sent regarding this change.
Estimated costs shown in the dashboard do not include VAT, as VAT is a tax applied at the time of billing.
We did not state the VAT amount separately in advance, as this information is available on your invoice.
If you do not wish to continue with the subscription under these terms, you are welcome to cancel your subscription.
Status changed to Awaiting User Response Railway • 10 days ago
10 days ago
That still doesn’t answer the actual questions.
If VAT is now being charged “due to updated tax regulations,” please provide:
A reference to the specific regulation or jurisdiction that now requires this (e.g. EU VAT, OSS registration, Portuguese VAT, etc.).
Proof of the email notification you claim was sent — including the date and subject line, because I never received any message about this.
An explanation of why this information was never communicated clearly in previous support interactions, and why your dashboard still shows misleading estimates that don’t include VAT.
Saying “it’s in the invoice” after the fact is not transparency — it’s avoidance.
Please escalate this to someone who can provide a proper and complete answer.
Status changed to Awaiting Railway Response Railway • 10 days ago
10 days ago
I need clarification on what exactly changed starting in September, since that’s when VAT began being added to my Railway charges.
If this was due to “updated tax regulations,” please specify:
What regulation or policy changed in September;
Which jurisdiction (EU, Portugal, or other) now requires Railway to collect VAT;
When Railway became registered or obligated to charge VAT in this jurisdiction.
I’m not asking what VAT is — I’m asking what changed in September that triggered it.
10 days ago
I understand your frustration regarding the recent VAT charges and the lack of clear communication. Here is the information you requested:
VAT began being applied to your account starting in September due to updated tax regulations that now require Railway to collect VAT for customers in your jurisdiction. This is a legal obligation and not a discretionary change by Railway.
The specific jurisdiction and regulation depend on your billing address. If you are located in the EU or Portugal, this is likely due to EU VAT or Portuguese VAT requirements. Railway became obligated to collect VAT in these regions as of September, in line with these regulations.
An email notification was sent to affected users regarding this change. If you did not receive this, please check your spam or promotions folder. The subject line was "Important Update: VAT Now Applies to Your Railway Subscription," and it was sent on August 28th, 2025.
The dashboard currently shows estimated charges before VAT, as VAT is calculated and applied at the time of billing. The final amount, including VAT, is always shown on your invoice.
The change is permanent as long as the tax regulations require VAT collection for your jurisdiction.
Status changed to Awaiting User Response Railway • 10 days ago
3 days ago
This thread has been marked as solved automatically due to a lack of recent activity. Please re-open this thread or create a new one if you require further assistance. Thank you!
Status changed to Solved Railway • 3 days ago