You can 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
There is no option to absorb the VAT
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.
How to Add VAT
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
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: Fees are absorbed by the event organizer.
Ticket Price: $100
VAT Rate: 5%
Amount paid: $105
Computation:
To compute the VAT, get the 5% of $100
$100 x .05 = $5
The VAT is $5
Breakdown of the amount paid by the buyer:
Accelevents ticketing fee: $5
Credit card processing fee: $3.35
VAT: $5
Remaining revenue (from ticket price): $91.65
$5 + $3.35 + $5 + $91.65 = $105
Scenario 2: Fees are passed to the buyer.
Ticket Price: $100
VAT Rate: 5%
Amount Paid: $114.03
Computation:
To compute the VAT, add the base ticket price ($100) + Accelevents fee ($5) and credit card processing fee ($3.61), then multiply it with the VAT rate (5%)
$100 + $5 + $3.61 = $108.61
$108.61 x .05 = $5.42
The VAT is $5.42
Computation:
Part 1: Get the total amount without the VAT
Get the total amount (ticket price + fees) without the VAT using this formula:
Ticket Price + AE Fixed + AE % + Stripe Fixed / (1 - Stripe %) = Total amount without sales tax
$100 + $1.50 + $3.5 + $0.3 / .971 = $108.444902162718847
The total amount without sales tax is $108.45
Part 2: Get the VAT
Multiply the total amount from Part 1 to the VAT rate (5%)
$108.444902162718847 x .05 = $5.422245108135942
The sales tax is $5.42
Part 3: Get the total amount to be paid
Since VAT will be added on top of the ticket price and AE fees, we need to compute the total amount to be paid that includes the Stripe % from the VAT.
Ticket Price + AE Fixed + AE % + VAT + Stripe Fixed / (1 - Stripe %) = Total amount to be paid
$100 + $1.50 + $3.5 + $5.422245108135942 + .30 / .971 = $114.02908867985164
The total amount to be paid is $114.03
Breakdown of the amount paid by the buyer:
Accelevents ticketing fee: $5
Credit card processing fee: $3.61
VAT: $5.42
Revenue (from ticket price): $100
$5 + $3.61 + $5.42 + $100 = $114.03
Frequently Asked Questions
When an attendee purchases a ticket, 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?
Yes, the VAT amount should appear as a separate row in the email.
If they indicated their Organization Name and VAT ID, it should appear in the invoice. Click here to learn more about adding the VAT information to the 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 utilize the disclaimer section by adding 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.
