How is EU VAT tax calculated with the PayKickstart in-house tax system?

The PayKickstart in-house tax system uses VAT tax logic in conjunction with VIES validation to ensure that the correct customers are charge VAT taxation upon checkout.

Below are the standard calculations for whether VAT tax should be added or removed for the checkout pricing upon purchase:

PLEASE NOTE: these rules are only valid for the default EU tax profile.

  1. if EU country of the customer is the same EU country of the vendor (in My Profile settings), and the customer enters a valid VAT ID, then charge VAT
  2. if the country of the customer is any other EU country (not same as the vendor) and the customer enters a valid VAT ID: WON’T charge VAT
  3. In all other cases where the customer is from any other country: charge VAT

Other important notes:

  • We are using the VIES System to verify the VAT ID.
  • The company name and VAT ID on the checkout pages are optional fields


Also see:

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