Automatic Tax/VAT Handling
We take care of sales tax, so you don’t have to
Sales tax and Value Added Tax (VAT) rates and regulations are always changing, the accounting around them can get complicated, and the collection and filing of them is time-consuming. By selling software online, you are responsible for the appropriate tax calculations, collection and filings—but you don’t have to worry about any of that, because we take care of it for you.
As the merchant of record, Kagi is required by law to collect sales tax on all physical items sold to customers located in our home state of California. In addition, Value Added Tax (VAT) must be collected on certain goods for buyers located in the European Union (EU), even if the seller is located outside the EU. Tax rates vary by county in California and change by country in the EU. For a quick-list of VAT-applicable product types, click here.
Your buyers will automatically see the appropriate taxes added to their online shopping cart during the checkout process. We collect the appropriate sales taxes from your customers and remit payment to the proper tax authorities — even for VAT.
Kagi’s VAT number, issued by Ireland’s Revenue Service, is EU372000052.
VAT-Inclusive Pricing Option
In some European countries, prices displayed to buyers are required to include VAT. If you would like your online store to have VAT already rolled into the displayed prices, use our VAT-inclusive pricing option. Unlike the standard pricing mode, where the final price to your buyer varies depending on their country and VAT rate, under the VAT-inclusive pricing option, the price you set in your store is the same as the final price your buyer pays.