UK Members: How Do You Handle VAT with Stripe?
I've been 'lucky' enough to have processed payments in the past through Paddle/FastSpring/Clickbank who all handle VAT on behalf of the vendor (as they become the vendor etc) so it's never been a concern.
However, these platforms don't allow you to sell services and I am looking to launch a new service so am looking at combining Stripe/ChargeBee.
But how do you handle VAT?
I know that chargeBee handles charging VAT, collecting proof and invoicing and then the payment is processed by Stripe. But what happens next? Does Stripe payout each transaction individually (so that I can assign the correct about of VAT and the relevant invoice in my accounting software) or do they pay out in bulk for the past week?
Any advice/further reading you recommend would be much appreciated
In Stripe you can set your VAT registration number which will then be included on all invoices. When creating the subscription you create the pricing plan (E.g. £10 per month) and then when you user signs up you specify the tax percentage (E.g. 20%, 5% or 0%, if it is not specified 0% rate is used). https://stripe.com/docs/billing/subscriptions/taxes
The payments can be scheduled daily, weekly or monthly (with a 7 day delay for GBP bank accounts), although they will be a bulk payment of all payments for that period you will see a note of all payments included which some accounting software can then automatically mark against the correct invoice(s).
Hope this helps.