Value Added Tax Mini One-Stop Shop (VAT MOSS) requirements
VAT MOSS requires that you still need to handle appropriate calculation of taxes for each of your customers as you do today - however the rules as to how to go about this that have been updated. Stripe will continue to handle charging each customer the total amount you specify at the end.
How you need to calculate the appropriate rate of VAT will differ depending on the nature of what you’re selling, the type of customer you’re selling to (a business or consumer), and where they are located. We recommend speaking to your accountant or tax advisor to determine the appropriate measures specific to your business.
As part of complying with the new VAT rules, you will likely need to collect various pieces of information about your customers such as billing address, IP address, country where their payment card was issued, and VAT number in the case of a business customer. Since you retain control over your full checkout flow and calculation of taxes while Stripe handles charging your customer the total amount you specify, you will need to build these steps into your own site or third-party platform you may be using.
If you’re taking payments via your own site, you can use Stripe to determine the country of card issuer, available through the API under the
card.country property: https://stripe.com/docs/api#card_object. You can read this property as soon as you’ve tokenised a card, in order to help calculate the appropriate VAT rate before you actually place the charge.
If you need to collect VAT on a subscription, you can populate the
tax_percent property when creating a subscription to set the tax rate that should apply. The final tax amount will be automatically calculated based the invoice subtotal and added to the invoice total, taking any discounts or other invoice items into account.
You may also find one of these third-party services useful in helping you deal with the VAT rule changes and calculating the appropriate VAT rates for each customer:
For calculating tax rates and ensuring compliance:
Specifically for invoicing: