Understanding Billing & Pricing

Introduction

This article explains how pricing, billing cycles, VAT, and proration work on Falix.

How Pricing Works

Server pricing is based on two factors:

Resource	Billed Per
RAM	Per GB per month
CPU	Per core per month

Your monthly price is calculated as:

Monthly Price = (RAM in GB × price per GB) + (CPU cores × price per core)

Billing Cycles & Discounts

Longer billing cycles offer discounts on your monthly rate:

Cycle	Discount	You Pay
Monthly	—	Full price each month
3 Months	10% off	3 months upfront at reduced rate
6 Months	15% off	6 months upfront at reduced rate
12 Months	20% off	12 months upfront at reduced rate

Your billing day is fixed (capped at the 28th of the month) and stays the same across renewals.

You can change your billing cycle at any time from the Billing Dashboard. See our Change Billing Cycle article for details.

VAT

VAT (Value Added Tax) may be applied depending on your location:

• EU Customers
• Non-EU Customers

• If you’re located in the EU, VAT is charged at your country’s rate (e.g. 19% for Germany, 21% for Latvia).

  EU businesses with a verified VAT number are exempt from VAT under the reverse charge mechanism. To claim this:

  1. Go to the Billing Dashboard.
  2. Open the Billing Info section.
  3. Enter your VAT number (e.g. DE123456789).
  4. The system will verify it automatically against the EU VIES database.
  5. Once verified, future charges will be VAT-exempt and invoices will show a reverse charge notice.

  Businesses in Latvia (the seller’s country) are always charged VAT regardless of VAT registration.

• If you’re located outside the EU, VAT is not applied. Your invoices will show a “VAT Not Applicable” notice.

Proration

Proration ensures you only pay for what you use when making changes mid-cycle.

Upgrades: When you upgrade resources or switch to a longer cycle, you’re charged a prorated amount for the remaining days in your current billing period. Your existing unused time is credited toward the new charge.

Downgrades: When you downgrade resources or switch to a shorter cycle, the unused portion of your current billing period is credited to your account balance and applied to future charges.

Cancellations: When you cancel a server, it stays active until the end of the current billing period. No partial refund is issued, but you keep access for the remaining time.

Account Credits

Credits accumulate from downgrades, cycle switches, and other adjustments. They are applied automatically to your next charge before your payment method is billed. If your credits cover the full amount, no charge is made.

Payment Methods

Three payment gateways are supported:

Gateway	Type
Revolut	Card payments
Stripe	Card payments
PayPal	PayPal balance or linked cards

You can switch between gateways at any time. See our Update Payment Method article for details.

To set up your billing country and VAT number, see How To Manage Your Billing Details.