Creating a Tax Profile / Charging Sales, VAT, & other Taxes
Written By Stefan S.
Last updated 2 months ago
PayKickstart offers a few different ways to charge sales or VAT tax to your customers.
#1. Our Taxamo Integration (learn more)
#2. PayKickstart Integration Tax System
IMPORTANT NOTES
Customer subscriptions will always use the tax profile set for the product at the time of subscription creation. It’s not possible to change a tax profile for an existing subscription.
With both our internal VAT system and the integration with Taxamo, you have the ability to not charge the customer if they provide a VAT ID.
Default tax profiles will use the tax ID set in your profile. Custom tax profiles can use your default tax ID, or you can set a custom tax ID.
You can select to use multiple tax profiles for 1 product. You cannot select tax profiles together if both of the profiles affect the same country.
If you are collecting the Shipping Address for your products, the EU Default Tax Profile would use the shipping address as the default for charging tax, and Custom Tax Profiles allow you to choose if you wish the Billing Address or the Shipping Address to be used.
→ Which vendor tax ID will be shown to customers on their invoices?
There are 3 locations within the platform that allow you to add your vendor tax ID, depending on your needs.
If tax was charged, and the Tax profile has a custom tax ID: the Vendor tax ID will be pulled from the custom tax profile.
If no custom tax profile or no tax was charged, then we will use the Campaign tax ID if the Campaign tax ID is set.
If no custom tax profile, no campaign tax ID, we will pull the vendor tax ID from your profile.
Optionally, you can also manually update the vendor tax ID on a specific invoice copy if needed.
Tax Profile Types
Billing or Shipping Address - Tax Charge Calculation Rule
You can choose the address that would be used for calculating the customer’s tax for Default VAT Tax, Canadian Tax, and Custom tax profiles.
For products where both the Billing and the Shipping address are disabled for collection, the tax would then be calculated based on the customer’s current IP location.
Please note that the product must have the option to collect the Billing Address and/or Shipping address enabled, based on the tax choice selected for your tax profile, for their tax to be based on the Billing or Shipping address.
The Billing and Shipping collection can be enabled in the Checkout tab of each of your products’ settings.
Adding Tax Profiles to Products
After you have created your Tax Profile(s), go to Campaigns → Edit Product settings and select the tax profile you would like to apply to that product.
NOTE:
Products can have multiple tax profiles added to the same product.
– Selected tax profiles added cannot share the same countries.
Multiple tax profiles can be selected on the same product to accommodate customers and tax requirements in multiple countries. Customers will be subject to the specific tax profile based on their location.
Tax allows multiple selections for PK (ONLY) tax service profiles.
You cannot choose the Taxamo tax profile and PK Tax Profile at the same time.
You cannot choose tax profiles from the same countries. Only 1 tax profile per related country.
If you would like to capture the customer’s VAT Tax ID to help with tax compliance, you can go to Campaigns → Edit Product settings.
When you enable VAT on your checkout pages, we now offer real-time VAT number validation, for when the customer enters a valid VAT #, VAT is not charged at checkout.
In the Collect Tax settings, you will first enable Tax, then enable VAT ID.
This will enable both the VAT Tax ID and Company Name fields on the checkout page.
Tax will show on checkout pages similar to this screenshot below.
If VAT is enabled, you can find the customer’s VAT Tax ID and Company Name under the Customer Details section of the Transaction Details modal.
Note:
With both our internal VAT system and the integration with Taxamo, you cannot charge the customer if they provide a VAT ID.
If related to a subscription, PK will validate the related tax before each customer subscription billing.
With both our internal VAT system and the integration with Taxamo, you cannot charge the customer if they provide a VAT ID.
If related to a subscription, PK will validate the related tax before each customer subscription billing.