When DoubleAgent explains your Stripe charges, it needs to know whether VAT is involved. There are three options:
- Only when the contact (i.e the customer in Stripe) is based in the UK
You can tell DoubleAgent which to use on your integration's settings page.
VAT is 20%.
It does not matter whether or not Stripe knows about the VAT. If you do tell Stripe to apply taxes to subscriptions, DoubleAgent will check that the tax rate in Stripe matches the tax rate you set in your integration. You can read more about this in troubleshooting invoice tax rates.
DoubleAgent does not handle VAT MOSS yet.
Reverse charge for EC customers
Reverse charge is only ever set if you answer Yes to "Do you need to use VAT rates other than standard UK ones?" (on your FreeAgent Settings → VAT Registration page).
Assuming you answered yes, every invoice for an EC customer will have a reverse charge VAT status and each invoice item will have 0% sales tax.
|“Charge VAT?” setting||Customer's location||VAT|
|Only when the contact is based in the UK||UK||20%|
|Only when the contact is based in the UK||EU||0% (reverse charge)|
|Only when the contact is based in the UK||Not UK and not EU||Out of scope|
|Always||EU||0% (reverse charge)|
|Never||EU||0% (reverse charge)|
|Never||Not UK and not EU||Out of scope|
Determining the customer's country
For each Stripe charge, DoubleAgent figures out the customer's country by checking the following fields. It uses the first one with a value:
- the charge's customer's address's country;
- the charge's customer's shipping's address's country;
- the charge's billing details' address's country;
- the charge's payment method details' card's country.