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. 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.

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Add VAT on Ticket Sales

  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.


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

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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.

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