We’ve heard from our school owners that EU users aren’t used to seeing VAT added on top of the price of a digital good. While we always confirm VAT rates for each transaction processed in a Teachable school (and allow users to enter a VAT ID on the checkout page), now school owners have the option to display prices across their school with VAT included. You can enable VAT inclusive pricing in the Settings > Taxes section of your school admin:
This means that any user located in the EU will see the price of the course on the sales page (and your school’s course directory) combined with their country’s VAT rate before checking out.
While prices on the sales page and course directory will automatically include VAT (if VAT inclusive pricing is enabled), there’ll be no extra messaging cluttering up your sales page. There’ll also be no change to the checkout page itself; in other words, students will still see a full breakdown of the transaction (course price + VAT rate, if applicable) and they’ll still have the option to add a VAT ID.
For example, in the past, a student from Germany would navigate to the course sales page and see the course priced as $80. Then, they would click the enroll button and be directed to the checkout page, where they would see an additional charge of $15.20 for VAT. They would then need to confirm $95.20 as the total price of the course, including their VAT rate before being charged.
However, now a student from Germany would see this total charge on the sales page; so, they will see $95.20 as the total price of the course. After clicking the enroll button, they’ll be taken to the checkout page, where they’ll see the total price broken down into the price of the course ($80) plus the appropriate VAT rate ($15.20).
For previously existing schools, you’ll need to enable VAT inclusive pricing. For newly created schools, this option will be enabled by default. For more information about how to enable VAT inclusive pricing, refer to our Knowledge Base.