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Stripe EU Vat

Jacob Hedengren asked in General

Hi!

Thank you Chris for your great videos. I live in Sweden and I'm trying to set up a stripe monthly subscription on my site and need to collect the correct vat from my users which I'm required by law to do.

So the taxation take place in the country where the purchaser resides. Therefore I have to find out where my customers live, add the correct vat, and after that charge them the correct amount. How would I solve this? Any ideas?

Thanks a lot in advance!

/Jacob

Reply

Hey Jacob! That's a really good question.

I don't know a whole bunch about VAT, but it sounds relatively easy so long as you're collecting this information at the time of checkout. It sounds like you might want to simply collect their country and then store a hash somewhere that contains all the VAT information for the country. When the user types in their country, you can match it against that hash (or records in the database if you want to update them there), and then you could charge the appropriate VAT.

This is a bit outdated, but may not take too much work getting back up and functional. It looks like it can tell you if you need to charge VAT which is nifty. It basically just stores an array of the countries and checks against that.
https://github.com/phusion/eurovat

Is VAT a standard rate for all transactions regardless of country? Sadly I don't know very much about it at all.

Reply

Thanks for your reply Chris and the link! I'll have to investigate this further. It has certainly made it a lot more difficult to sell digital products and services within the eu.

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