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Charging VAT on ConvertKit Commerce purchases
Charging VAT on ConvertKit Commerce purchases

Set up VAT collection in ConvertKit? Here's how EU and UK customers will be charged for purchases of your ConvertKit Commerce products.

Updated over a week ago

"That will be $19, inclusive of VAT"

NOTE: If you aren't sure whether you need to charge VAT on ConvertKit Commerce purchases, check out our guide to understanding your VAT obligations. As for how to set up VAT collection in ConvertKit, visit our guide to collecting VAT for ConvertKit Commerce product purchases.

DISCLAIMER: This article is neither financial advice nor tax advice. We recommend that you speak to your tax advisor with any questions or concerns about planning for your taxes.

Once you've set up Value-Added Tax (VAT) collection in ConvertKit, you're all set to charge VAT whenever someone from the EU or UK buys your ConvertKit Commerce products or tips you using your Tip Jar!

Here's what happens when they do so:

The customer fills out their location on the checkout page

If the customer is located in a jurisdiction in which you are registered for VAT collection, your ConvertKit Commerce product's checkout page will display a Location field for the customer to provide their billing location.

The checkout page will also clarify that all prices are inclusive of VAT.

We determine the applicable VAT rate for the transaction

We'll use the following data points to determine the applicable VAT rate for the transaction:

  1. The customer's billing location (as provided by the customer)

  2. The customer's IP address

  3. The customer's bank address

The customer receives a VAT-compliant receipt

When the transaction is complete, we'll send the customer a VAT-compliant receipt.

Among other things, the receipt will state:

  • Your registered business address

  • Your VAT registration number

  • The amount of VAT charged

  • The price breakdown

NOTE: If your receipts aren't showing either the amount of VAT charged or the price breakdown, check that:

Learn more about collecting VAT for ConvertKit Commerce product purchases here πŸ‘‡

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