Add VAT to your event tickets to comply with state or local regulations. In this article, you will learn 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
If VAT is added, the buyer can 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.
Add VAT on Ticket Sales
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.
Calculating VAT
The VAT computation will depend on your setup based on these scenarios:
Scenario 1: Absorb Ticket Fees and Pass VAT to the Ticket Buyer
This scenario applies when you select "Absorb Fees" in the ticket fee settings.
This means the buyer will pay only the ticket price + VAT. You will shoulder the ticketing and credit card processing fees, which will be deducted from your revenue.
| Formula | Total |
Ticket Price |
| $100 |
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 - CCP | $96.80 |
Total Payment | Ticket Price + VAT | $105 |
Scenario 2: Absorb Ticket Fees and VAT
This scenario applies when you select "Absorb Fees and VAT taxes" in the ticket fee settings.
This means the buyer will only pay the ticket price. You will shoulder the credit card processing fees and VAT, which will be deducted from your revenue.
| Formula | Total |
Ticket Price |
| $100 |
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 - CCP - VAT | $87.80 |
Total Payment |
| $100 |
Scenario 3: Pass Ticket Fees and VAT to Ticket Buyer
This scenario applies when you select "Pass Fees on to Ticket Buyer" in the ticket fee settings.
This means the buyer will pay for the ticket price, and on top of that, they will also pay for the credit card processing fees and VAT.
| Formula | Total |
Ticket Price |
| $100 |
Revenue from Ticket Price | Ticket Price | $100 |
Total Amount Without the VAT
We need to compute this to get the base for computing the VAT | (Ticket Price + Stripe $.3) divided by (1 - Stripe 2.9%)
 | $103.30 |
VAT | 5% of the Total Amount Without the VAT | $5.16 |
Total Payment Since VAT will be added on top of the ticket price and fees, we need to compute the total amount to be paid, which includes the Stripe % from the VAT. | (Ticket Price + VAT + Stripe $.3) divided by (1 - Stripe 2.9%)
| $108.62 |
Credit Card Processing Fee | Total Payment - Ticket Price - VAT | $3.46 |
Note: There may be a rounding up of $0.01 in the total amount to account for the possible loss on round-offs for group/bundle tickets.
VAT should show during registration, in the order confirmation email, and the invoice.
The buyer's Organization Name and VAT ID should also appear in the invoice.