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

  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: 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 for 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?

Can the VAT be found in any report?

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

How can I inform my 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.

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