Hello, Yorgos, In the context of B2B transactions within the EU, if a company provides a valid VAT ID number at the time of purchase, Stripe applies a zero rate to the transaction. This means that the VAT will be calculated at 0% for these transactions, under the condition that the VAT ID is valid and provided by the customer. This process is part of the reverse charge mechanism, which is common in cross-border B2B supply of services within the EU. For transactions where reverse charge applies, the buyer is responsible for calculating and remitting the tax, and the seller's invoice will indicate that the transaction is a reverse charge, not including tax in the total amount. It's important to ensure that the VAT ID is entered at the time of checkout to have this exemption automatically applied. For more detailed information on how Stripe handles these transactions and the importance of providing a VAT ID for B2B sales within the EU, see: docs.stripe.com/tax/zero-tax docs.stripe.com/tax/supported-countries/european-union We hope this information is helpful!
Hi what about VAT in the EU for B2B? If the company in the EU puts his VAT ID number and the id is valid , does it calculate 0% ?
Hello, Yorgos,
In the context of B2B transactions within the EU, if a company provides a valid VAT ID number at the time of purchase, Stripe applies a zero rate to the transaction. This means that the VAT will be calculated at 0% for these transactions, under the condition that the VAT ID is valid and provided by the customer. This process is part of the reverse charge mechanism, which is common in cross-border B2B supply of services within the EU. For transactions where reverse charge applies, the buyer is responsible for calculating and remitting the tax, and the seller's invoice will indicate that the transaction is a reverse charge, not including tax in the total amount. It's important to ensure that the VAT ID is entered at the time of checkout to have this exemption automatically applied.
For more detailed information on how Stripe handles these transactions and the importance of providing a VAT ID for B2B sales within the EU, see:
docs.stripe.com/tax/zero-tax
docs.stripe.com/tax/supported-countries/european-union
We hope this information is helpful!
what happens to the tax if someone from new york purchases?
Great question! When properly set up, the valid tax rate will be applied based on the customer's location for all states.