EU VAT guide

EU VAT checkout checklist

Use this checklist when configuring a direct checkout for SaaS, digital products, templates, services, or online goods.

Customer classification

  • Ask whether the customer is a business or consumer.
  • Collect business name, billing country, and VAT number for B2B customers.
  • Do not treat a customer as reverse charge only because they selected business.

VAT calculation

  • Determine whether the sale is domestic, EU cross-border, or outside the EU.
  • Apply the customer-country VAT rate for covered OSS B2C sales.
  • Keep reduced-rate logic separate from standard-rate defaults.
  • Make refunds and credit notes preserve VAT treatment.

Records

  • Store invoice totals, tax rate, tax amount, customer country, and customer type.
  • Store VAT number format and VIES validation evidence where relevant.
  • Retain payment, refund, order, and invoice records together.

FAQ

Should checkout validate VAT numbers automatically?

It should at least capture and format-check them. For EU B2B reverse charge, official validation through VIES or a reliable integration is usually needed.

Should prices be VAT inclusive or exclusive?

That depends on audience, local consumer pricing rules, and invoice workflow. The important part is that checkout, invoice, and records agree.

Official sources