You need to pay using Paddle to add your VAT information to the invoice. Paddle collects payments and processes VAT or Sales Tax as our Merchant of Record (MoR). It charges VAT based on your country of origin.
- VAT is shown on the online VAT receipt, not on the client area invoice.
- VAT-registered businesses will not pay VAT on cross-border transactions if a VAT number is provided at the time of payment. In some countries, you can reclaim VAT.
- VAT is charged at checkout and handled by Paddle.
- VAT is applied to both private individuals (B2C) and customers registered as businesses / legal entities (B2B).
- The VAT Number can be added during or after payment. You can store it in your Account Details.
VAT Refund:
Add your VAT details to the VAT receipt if you have paid VAT and are eligible for a VAT refund. Paddle will automatically refund the VAT, and the refund will be processed immediately.
Depending on your bank's policies, it may take 3-5 working days for the funds to appear in your account. If you have not received the funds within 5 working days (excluding holidays), please reach out to help@paddle.com.
VAT Receipt
To view the VAT receipt, go to:
- Client Area > Billing > My Subscriptions (Paddle) > Transactions > View
- Or, Client Area > Billing > My Subscriptions (Paddle) > Paddle Portal > Payments > [click a payment] > View invoice.
VAT Number in Account Details
You can store the VAT number in the Client Area for Paddle to pick up during payment:
- Go to Client Area > Hello, YourName! > Account Details.
- Add your VAT number in "VAT Number / Tax ID".
- Save Changes.
- Done! Paddle will pick up your VAT number at checkout.
Add VAT Number During Payment
VAT is displayed as a separate line item on the Paddle payment interface when you make a payment:
- On your invoice, select Paddle as the payment method, then click "Auto Pay" or "Pay Now".
- Click "Add VAT Number".
- Enter your VAT details.
- Click "Add VAT Number".
Add VAT Number after Payment
After you pay your invoice, you can still add the VAT number to reclaim VAT:
- Go to Client Area > Billing > My Subscriptions (Paddle) > Paddle Portal.
A new window will launch for Paddle Portal. - Click "Payments" on the left sidebar.
- Click a payment to view details.
- Click "Update invoice" and enter your VAT information.
Note: You can edit payment information only once, so ensure all necessary fields are updated and correct before proceeding. - Click "Update Invoice".
- Done! Paddle will automatically refund the VAT.
Paddle (Legacy):
After you pay your invoice, Paddle will send a payment receipt to your email with a link to enter your VAT information:
- Open the payment receipt email you received from Paddle.
- Click "View Receipt" in the email Paddle sent to access the itemized online receipt.
- Click "Add address & VAT Number (optional)" near the top left of the online receipt.
- Check the [*] "This is a business purchase" option to make the VAT field visible.
- Enter your information and click "Save".
- Done!
Contact Paddle Support
If you were incorrectly charged VAT, did not get your VAT refund within 5 working days, or need any help with VAT, contact Paddle at help@paddle.com or visit the following link:
How do I get in touch with Paddle support?https://help.paddle.com/hc/en-us/articles/115002266545-How-do-I-get-in-touch-with-Paddle-support
More Information
VAT rates based on country:https://www.paddle.com/help/sell/tax/which-countries-does-paddle-charge-sales-tax-or-vat-for
What format should my VAT number use?https://www.paddle.com/help/sell/tax/what-format-should-i-use-for-my-vat-id
How does the Sales Tax exemption work?https://www.paddle.com/help/sell/tax/how-does-sales-tax-exemption-work
I need a VAT Refundhttps://help.paddle.com/hc/en-us/articles/115002257665-I-need-a-VAT-Refund
