PayKickstart offers a few different ways to charge a sales or VAT tax to your customers.
#1. Our Taxamo Integration (learn more)
#2. PayKickstart Integration Tax System
- *NOTE: 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.
PayKickstart Tax Options:
Default tax Profiles:
PayKickstart offers a way to charge a tax to your customers without having to use a 3rd party tax integration. To use our internal tax system go to Campaigns >> Tax Profiles.
You will see three "Default" tax profiles. US, Canadian and European Union default tax profiles.
- Sales Tax will charge the SAME percentage to every customer (regardless of their location). If you use our default sales tax profile, we will automatically charge by default your local state's tax rate (specified in My Profile section - for US vendors only). You can always create your own custom sales tax profile and charge any percentage you would like.
- VAT Tax will be dynamic based and charge a customer based on their IP Address or Country they specify on the checkout page. Our default VAT Tax profile is updated every month with the most recent Tax rates per EU country. You alternatively can create a custom profile and specify any tax percentage you would like for any country you would like.
When you enable VAT tax on your checkout pages, we offer real-time VAT number validation, for when the customer enters a valid VAT #, then VAT is not charged at checkout.
Custom Tax Profiles:
To create a new Tax Profile, click on New Profile. Then give it a unique name and select the type of tax profile you would like to work with.
If you select Sales Tax, you will want to specify the tax % that every customer will be charged at checkout.
If you select VAT Tax, you can enable/disable which countries you would like to apply a tax to.
- Custom VAT profiles will charge all customers the VAT percentage from their country unless a Valid VAT id is provided and you have enabled VAT validation for the custom tax profile.
- 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.
Custom US state tax profiles will charge the customer based on the customer’s location(State).
PayKickstart will automatically offer the default state tax rates, but vendors are able to set a custom tax rate for each state if they would like.
If you select Canadian Tax, you can enable/disable which provinces you would like to apply a tax to.
Custom Countries Tax:
Custom tax allows you to add countries and set a country-wide tax rate.
You may also click the "Add Country" button if you would like to charge customers from any specific Country a specific tax.
If using the custom tax profile option PayKickstart will show the tax as “Tax” or “VAT” on the checkout and invoice based on the customer’s country of purchase.
If the customer is from a country that uses “VAT”, then VAT will be shown.
If the customer is from a country not using “VAT”, then the tax column will display “TAX”
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.
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 tax on your checkout pages, we now offer real-time VAT number validation, for when the customer enters a valid VAT #, then 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 customers 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 have the ability to not charge the customer if they provide a VAT ID.
Customers will now be charged the selected tax rate based on the tax profile used for the product.