VAT and EC status

VAT

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
  • Always
  • Never

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.

VAT MOSS

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?” settingCustomer's locationVAT
Only when the contact is based in the UKUK20%
Only when the contact is based in the UKEU0% (reverse charge)
Only when the contact is based in the UKNot UK and not EUOut of scope
AlwaysNot EU20%
AlwaysEU0% (reverse charge)
NeverUKExempt
NeverEU0% (reverse charge)
NeverNot UK and not EUOut 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.