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.
- If the EU country of the customer is the same EU country of the vendor (in My Profile settings), regardless of valid VAT ID or not, charge VAT
- 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
- If the country of the customer is any other EU country (not same as the vendor) and the customer does NOT enter a valid VAT ID: charge VAT
- If a customer is NOT from any EU country, WON’T charge VAT
Other important notes:
- We are using the VIES System to verify the VAT ID. Every transaction related to VAT will use VIES for tax verification.
- If VIES cannot be reached when attempting to process a transaction PK will charge VAT for the customer as it's easier for vendors to partially refund tax on a transaction rather than charge tax later.
- The company name and VAT ID on the checkout pages are optional fields
- To learn more about standard EU VAT protocols click here
To learn more about other available tax profiles click here: https://support.paykickstart.com/knowledge-base/creating-a-tax-profile/