Chargebee is a PCI Level 1 certified subscription and recurring billing, and invoicing platform for subscription based SaaS and eCommerce businesses. It integrates with the leading payment gateways around the world to let you automate payment collection, invoicing, email notifications and customer management. With power packed integrations such as MailChimp, ShipStation, Salesforce and Shopify, Chargebee takes the pain out of subscription billing.
How can Chargebee save the EU VAT headache for you?
Chargebee ensures that you comply with the latest EU VAT rules in the following way. And all of this is done, automatically.
1. Location Validation (For Digital Services):
The primary source for the customer's location is the "Country" present in the Billing Address of the customer.
Whenever a customer signs up with you, Chargebee validates the customer's country - which must match either of the two evidences - country of the IP Address of the customer, or the country determined by the Card BIN of the customer. Unless and until the location is validated, the customer will not be able to complete the order.
2. VAT Number Validation:
For a transaction to be considered B2B, a valid VAT number has to be provided by the customer. Once the customer enters a VAT Number in the checkout page, Chargebee will automatically verify the validity of the VAT number, using the European Commission's VAT Information Exchange System (VIES).
3. EU VAT Invoice:
An EU VAT Invoice sent to a consumer contains the following information:
- Merchant's trading name and address
- Merchant's VAT number
- Invoice Date
- Buyer's name or trading name, and address.
The invoice contains the applicable VAT rate for each line item and a subtotal amount before applying VAT and a final invoice amount after VAT is added.
To read more on how Chargebee handles EU VAT for you, click here.
“We've been using Chargebee for half a year and they've already surprised us positively multiple times. One example was VAT regulation changes in January 2015 that almost made billing for electronic products in EU a nightmare, but as Chargebee had the support for new system available from day one, the trouble was minimized and correct VAT percentages used for each country automatically.”
-Antti V, Co founder, Sharetribe.