Adding VAT to Ticket Sales

Collect VAT when selling event tickets

Shella avatar
Written by Shella
Updated this week

Add VAT to your event tickets to comply with state or local regulations. This article will teach you how to apply and calculate VAT on event tickets.

IMPORTANT NOTES:

  • You can only add VAT if there are no ticket sales yet

  • VAT will be applied to all ticket types

  • VAT will be charged to the ticket buyer

  • VAT can be absorbed by the event organizer

  • If VAT is added, the buyer will have the option to add their Organization Name and VAT ID while checking out, which will appear in their invoice.

  • VAT and Sales Tax cannot be applied at the same time

  • If you want to add Sales Tax instead of VAT, click here for more information.

Collecting VAT from Ticket Sales

How to Add VAT

  1. Enable VAT

    • Go to Settings > Payment Processing

    • Click the Taxes tab

    • Under VAT Tax, select "Yes, I need to charge tax for this event"

    • Click Agree

  2. Fill out the required information.

    • VAT Tax Name

    • VAT number ID

    • Country

    • Tax Rate - this is the tax percentage, not the tax amount.

How is VAT Calculated?

The VAT computation will depend on your setup based on these scenarios:

Scenario 1: Absorb Fees

In the Ticket Fee Settings, you can select "Absorb Fees". This means the buyer will pay only for the ticket price + vat. You will shoulder the ticketing and credit card processing fees, which will be deducated from your revenue.

  • Ticket Price: $100

  • VAT: 5%

  • Amount paid: $105

Formula

Total

Ticket Price

$100

Accelevents ticketing fee

(for Free and Starter Plan)

$1 + 3% of Ticket Price

$4

Credit Card Processing Fee

2.9% of Ticket Price + 30 cents

$3.20

Revenue from Ticket Price

Ticket Price - AE Fee - CCP

$92.80

VAT

5% of the Ticket Price

$5

Total Payment

Ticket Price + VAT

$105


Scenario 2: Absorb Fees and VAT taxes

In the Ticket Fee Settings, you can select "Absorb Fees and VAT taxes." This means the buyer will pay only for the ticket price. You will shoulder the ticketing fees, credit card processing fees, and VAT, which will be deducted from your revenue.

Formula

Total

Ticket Price

$100

Accelevents ticketing fee

(for Free and Starter Plan)

$1 + 3% of Ticket Price

$4

Credit Card Processing Fee

2.9% of Ticket Price + 30 cents

$3.20

VAT

5% of the Ticket Price

$5

Revenue from Ticket Price

Ticket Price - AE Fee - CCP - VAT

$87.80

Total Payment

$100

Scenario 3: Pass Fees on to Ticket Buyer

In the Ticket Fee Settings, you can select "Pass Fees on to Ticket Buyer." This means the buyer will pay for the ticket price, and on top of that, they will also pay for the ticketing fees, credit card processing fees, and VAT.

Formula

Total

Ticket Price

$100

Revenue from Ticket Price

Ticket Price

$100

Accelevents ticketing fee

(for Free and Starter Plan)

$1 + 3% of Ticket Price

$4

Total Amount Without the VAT

We need to compute this to get the base for computing the VAT

(Ticket Price + AE Fee + Stripe $.3) divided by (1 - Stripe 2.9%)

$107.41

VAT

5% of the Total Amount Without the VAT

$5.37

Total Payment

Since VAT will be added on top of the ticket price and AE fees, we need to compute the total amount to be paid, which includes the Stripe % from the VAT.

Ticket Price + AE Fee + VAT + Stripe $.3) divided by (1 - Stripe 2.9%)

$112.95

Credit Card Processing Fee

Total Payment - Ticket Price - AE Fee - VAT

$3.58

Frequently Asked Questions

When attendees purchase tickets, will they see a VAT breakdown in the order summary?

  • Yes, there is a separate row for the VAT in the order summary.

Will the VAT information appear in the order confirmation email and invoice?

Can the VAT be found in any report?

  • Yes, it is included in Registration Data and All Ticket Buyer Data.

How can I inform attendees that we will charge VAT before checking out?

  • You can use the disclaimer section to add information about the VAT charges.

    • Go to Registration > Order Form

    • Scroll down below to Checkout Disclaimer

Can VAT be applicable for tickets already purchased?

  • No, if you try to enable the VAT feature after tickets are already purchased, you will get an error message that you cannot turn on the VAT feature anymore.

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