Add VAT to All Paid Tickets
Add VAT to your event tickets to comply with state or local regulations. In this article, you will learn how to apply the same vat rate for all paid ticket types, customize the vat rate per ticket type 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 the Same VAT Rate to All Tickets
This setting applies the same VAT rate to all ticket types
Go to Settings > Payment Processing
Select Taxes
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.
Select Display for each ticket if you want to see the vat breakdown per ticket in the invoice
VAT TAX Fields
With VAT enabled, buyers will be asked during registration if the invoice will be addressed to an individual or an organization. If they choose organization, they can optionally add the organization name that should appear in the invoice, and the VAT ID will be required if in the VAT settings you required it. If they choose individual, they will skip the 2 fields.
Note: These fields will appear in the buyer order form settings if VAT is enabled but this cannot be customized.
Add a Custom VAT Rate Per Ticket
This setting allows you to assign different VAT rates to each ticket types based on the products or services included in the ticket. To do so, ensure that VAT is enabled as outlined above, and complete the necessary details on that page.
Open the ticket type for editing in Registration > Set Up Tickets
Go to Advanced Settings
Tick the box for Apply custom VAT amount
Enter a value in percentage in the VAT percentage field, and click Save
Notes:
The VAT rate you set in Settings > Payment Processing will apply to any Paid Ticket Types that don't have a custom VAT rate assigned.
This feature cannot be used if ticket exchanges are allowed in the event. To add a custom ticket vat, you need to disable the ticket exchange feature.
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 |
VAT | 10% of the Ticket Price | $10 |
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%)
| $113.60 |
Credit Card Processing Fee | Total Payment - Ticket Price - VAT | $3.60 |
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 if the VAT is passed to the buyer. The buyer's VAT ID should also appear in the invoice.