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When I saw this announcement, I had fully expected these new features to be included as standard - I was a bit surprised when I saw they were charging for them.
by GordonS 5y ago
When I saw this announcement, I had fully expected these new features to be included as standard - I was a bit surprised when I saw they were charging for them.
That said, I think the pricing is well worth it if you're selling B2C. EU VAT is complicated, and I presume state-level sales tax in the US is too.
If you're selling B2B in the EU however, then all you really need to do it collect and validate VAT registration numbers. Now, the EU API for this is pretty crappy, and has a ridiculously low rate limit - but still, it's not difficult to do. Indeed, I did it in a few hours when I was setting up Stripe for a B2B micro-ISV one or two years ago. I actually think that VAT ID validation should be included as standard - not chargeable.
- vvoyer 5y agoHey there, I believe validating VAT numbers is outside of the Stripe tax pricing and part of the Customer Tax IDs API, without any extra charge. Maybe someone from Stripe can confirm? https://stripe.com/docs/billing/customer/tax-ids https://stripe.com/docs/billing/customer/tax-ids And yes, if you sell only to B2B Europe and everyone inputs their VAT number you're fine (because you actually don't have to charge VAT, it's a reverse charge). Stripe tax do know this nowadays. But that's actually not so common, people signing up for products usually have no idea what the VAT number of their company is. But they are capable of getting a credit card and giving you a business address. In this case, you have to compute VAT rates based on the country of the customer. (This is not an accounting advice, just personal experience!)
- GordonS 5y ago> Hey there, I believe validating VAT numbers is outside of the Stripe tax pricing and part of the Customer Tax IDs API Ah, good to know! It was mentioned in the same TFA, so I had thought it was chargeable with the rest of it. > But that's actually not so common, people signing up for products usually have no idea what the VAT number of their company is. Hmm, that hasn't been my experience, on either side of the table. As a biz owner, I get plenty orders from companies big and small, and always get a VAT ID through. When purchasing (on occasion) in my previous day job, I just had to ask someone in accounts what it was.
- edwinwee 5y agoYep, that's correct! Tax ID validation is included with Checkout (outside of Stripe Tax pricing).