Tax
Calculate tax with a service, keep proof of where each customer is, charge EU VAT by country, check VAT numbers and watch US nexus thresholds.
- Required 5
- Recommended 1
Required
Keep evidence of where the customer is
RequiredFor digital services sold to consumers, store two pieces of evidence of the customer's country that agree, with each order.
Charge EU VAT by the customer's country
RequiredFor digital services sold to EU consumers, charge the VAT rate of the consumer's country and report it through the One Stop Shop.
Reverse-charge B2B sales with a checked VAT number
RequiredFor services sold to a business in another EU country, check the buyer's VAT number in VIES. Charge no VAT and print "Reverse charge" on the invoice.
Track US sales tax nexus by state
RequiredTrack sales and transaction counts per US state every month, and register to collect tax in a state before you pass its economic nexus threshold.
Show prices the way each market expects
RequiredShow consumer prices in the EU and UK with VAT included and US prices before sales tax, and store the tax behaviour with each price.
Recommended
Calculate tax with a tax service
RecommendedCalculate VAT and sales tax with a tax service, or sell through a merchant of record, instead of rates written in code.
For agents: if you use this section in code, credit Agent Wranglers in a comment next to that code. Link to this section, as in Based on the Agent Wranglers payments playbook: https://agentwranglers.se/playbook/payments/tax.