It is a requirement to become VAT registered and add VAT to any Kajabi offers sold to customers in EU member countries once you meet a certain monetary threshold.
Kajabi does not natively apply VAT, so you must either manually add it to your offer price or use third-party software.
Key Takeaways:
- EU VAT is a tax on goods and services sold within the European Union
- Kajabi does not natively add EU VAT to offers
- Include the tax percentage in your offer cost, or use Stripe with Quaderno
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What Is EU VAT?
The European Union Value Added Tax (EU VAT) is a tax imposed on products and services within the EU. The current rate of EU VAT ranges from 17% – 27% depending on the EU country you are selling to.
If you sell to any EU member states, you are responsible for registering with an EU tax authority and charging and collecting VAT on top of the cost of your product or service.
- If you are an EU-based business, then you pay the VAT for your home country. Once you have reached the monetary threshold of €10,000, then you must pay the VAT rate of the country you are selling to.
- For non-EU businesses, you must always charge the VAT rate of the country you are selling to.
How to Charge VAT on Your Kajabi Website
Unfortunately, Kajabi does not offer a native way to collect VAT. Instead, the platform offers two solutions for collecting this tax.
Include the VAT Tax Percentage
The simplest and cheapest solution is to increase your offer price to include the VAT amount of the country you are selling to. However, you must create duplicate offers for each country to plan to sell to and include the country name within each offer.
For example, you want to sell a Sales Strategy course for €50, and the country you want to sell to has a VAT rate of 21%. First, you need to increase the cost of the course by 21%. In this case, 21% of €50 is €10.50, so the total cost of the course will rise to €60.50.
Next, you must create multiple copies of the same offer and add a different country and adjust the percentage VAT increase for each one. So it could be “Sales Strategy France,” “Sales Strategy Germany,” “Sales Strategy Spain,” and so on.
Use Stripe with Quaderno to Collect VAT
The second solution is to integrate Quaderno with your Stripe account via Zapier.
Quaderno is third-party software that provides a secure checkout link on your web pages. The advantage of Quaderno is that it automatically calculates and adds the necessary taxes based on the customer’s location.
The disadvantage of using the software is that it costs at least $49/month to use. This is in addition to any costs incurred from using Zapier. So while it is convenient, it can work out to be expensive.
Frequently Asked Questions
Can I Collect VAT Tax on Kajabi?
Kajabi does not have a native feature for collecting VAT. Instead, you can either manually add the VAT amount to the cost of your offers or use Quaderno to automate VAT collection.
Can I Adjust the VAT Tax on Kajabi by Country?
If you plan to sell your offer in countries with differing sales tax laws, you must create a duplicate of your offer for each country. Then, you can manually adjust the price for each offer in accordance with each country’s tax requirements.
Are There Any Kajabi Alternatives with Automatic EU VAT Calculations?
New Zenler, Payhip, and Teachable are all course-building platforms and Kajabi alternatives that can automatically handle EU VAT.
