EU Value Added Tax

Collecting and remitting VAT is complicated when selling online! We're making it easier.

Setup

To begin collecting VAT from EU customers you must enter your VAT Business Number, which you can do via Settings > Taxes. Our system will then verify the number with the EU. So long as your VAT number comes back valid we will begin detecting and charging taxes as necessary.

Enter your VAT Business Number to enable VAT collection

Your VAT ID must be active and valid in order to collect taxes. If you don't have a VAT ID but need to collect VAT then we recommend reading Quaderno's guide here: https://quaderno.io/blog/how-to-get-vat-number-business-in-europe/

FAQ

Do I have to collect VAT?

Wether or not you need to collect VAT is a complicated answer. In short, if you are based in, or have customers in the EU then you likely need to register for VAT and begin collecting it from your customers.

The first part is on you but we make the collection and reporting part easy!

Quaderno has a thorough guide on EU VAT that we recommend reading if you're at all unsure about how VAT applies to you: https://quaderno.io/resources/eu-vat-guide/

How do I enable VAT on my products?

Simply enter your VAT Business Number via Settings > Taxes. We will then validate your number to ensure it's active. Once validated any customer that purchases from within the EU will be charged VAT.

If your VAT number does not validate VAT will not be collected from customers.

Can my customers enter their VAT ID for tax-free purchases?

Yes! When a customer purchases from your Mavenseed store they will be given the option to enter their VAT ID at checkout, so long as the VAT ID is validated then taxes will not be charged (this is known as the reverse-charge mechanism in the EU).

Are invoices with tax information provided to my customers?

Absolutely! Your customers may download an invoice for each purchase. This invoice includes all of the EU-required information from both you and your customer, such as billing address, tax amounts paid, tax rates, item descriptions, etc.

Can I view a report of sales tax collected in Mavenseed?

You may view a report of all taxes collected, including a breakdown by type, via Reports > Taxes.

How do taxes on recurring payments work?

When your customer starts their subscription, we collect their billing address and store it into their profile. The customer can edit this information at any time by visiting their Account.

We send the Country, the State, and the Zipcode to TaxJar and they provide the calculations for how much to collect. This amount is added onto the invoice prior to the automatic payment.

Have another question that isn't answered here? Ask us via email!