Behind the question of whether a billing system can help your SaaS business grow is the question of what it means for a SaaS business to grow. This guide tackles both — it creates a model you can use to approach SaaS growth and a 360-degree view of how your billing system fits into it. Read More >
Update: Beginning from January 1 2015, EU VAT rules on the of sale digital goods and services will be changed. Learn more at http://euvat.chargebee.com
EU VAT had the highest feature request count from our merchants in Europe, so here it is!
Merchants can now apply EU VAT rules and charges based on the buyer’s country and EU VAT number. So how does this actually work?
If you are a merchant in the EU and you want to apply and collect EU VAT based on your country’s tax rates, you can do so by simply configuring the merchant country, selecting the tax type as “EU VAT” and setting the tax percentage.
So what really happens behind the scenes?
Well, once you’ve configured the merchant country and the tax type, we will display an EU VAT field on your payment page, and your buyers can enter the EU VAT number. If the buyer is from the same country as the merchant, they will be charged VAT regardless of whether they enter their VAT number or not. If the buyer is from a different EU member state and they enter their VAT number, VAT tax will not be applied; provided that the entered VAT number is valid. We validate the entered VAT number using VIES. For buyers from a different EU member state who do not enter their VAT number, VAT charges are applicable.
Well, that’s the shortest version of how it works. To know more about EU VAT, click here.
**Next Up: **Canadian Tax Support.
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