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EU VAT Digital Goods Update

Improvement

We are happy to announce a new way that we’re handling EU VAT taxes for digital goods.

Here is a summary of the key changes:

  • VAT will be collected at checkout for EU-based customers (on all gateways except custom gateways without VAT enabled)

  • Country verification (all gateways - except custom gateways without VAT enabled)

  • Teachable handles filing & remittance to respective governments (Teachable gateway only)

  • Transaction breakdown table will show VAT (all gateways - except custom gateways without VAT enabled)

  • Transaction CSV will show country of sale (all gateways - except custom gateways without VAT enabled)

When you are using the Teachable payment gateway, we take care of VAT collection and remit it to the EU governments as required. You will not need to fill out any forms or handle filing or paying. Your EU-based customers will see and pay the added VAT on their course purchases.

When you are using a custom payment gateway, VAT is handled differently. First, you must enable VAT in Taxes > Settings in the admin area. Once you do this, the VAT tax will be automatically applied at checkout. However, school owners will be responsible for tax filing and remitting funds to respective European governments.

If you have both custom gateways enabled, you can disable VAT collection at checkout. 

Here is what the checkout page will look like for those based in the EU.

The tax percentage applied varies depending on where the individual resides in the EU. Below is the VAT taxable countries we will be supporting and the associated tax rates.

Please note that tax rates are subject to change. Visit this website to find current VAT rates across the EU.