VAT (Value-added Tax)

VAT, or value-added tax, is supported by Recurly for European merchants. Recurly handles VAT percentages across different countries and different purchasing scenarios.

Configure VAT on your Account

VAT is available on all Recurly accounts that have set an EU country in their configuration page. If you have not done so already, set your company country under Site Settings.

1. Check the Charge customers EU VAT check box on the Site Settings page.

2. Specify your VAT percentage.

3. Select the Show VAT number check box on the Hosted Payments Configuration page.

VAT Scenarios

• If purchaser is outside of the EU, they will not be charged the VAT fee. This is determined by the country a purchaser provides in their billing information.

• If purchaser is outside the company’s country, but inside the EU, the purchaser will be charged the VAT fee. The purchaser can enter a VAT number in their billing information to avoid having the VAT charged.

• If purchaser and company are inside the same country, the purchaser will be charged the VAT fee.

Validation

Recurly validates the VAT number for all production transactions against VIES.