[Automatic Taxes] Add EU Reverse Charge
planned
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Marcel Hauer
The Automatic Taxes feature is great, but it lacks the EU Reverse Charge feature when selling B2B.
Are there any plans for adding this?
It's essentially setting the taxes to 0% and adding a text to the receipt / invoice that tax is to be paid by the receiver under the Reverse Charge law.
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G
Gajal Jain
updated the status to
planned
J
Julius Wiedemann
Sales & Marketing HighLevel team — I think there is already a very clean solution for this.
You recently introduced Stripe Automatic Tax for Agency/SaaS billing, which directly uses Stripe Tax.
Why not make the same Stripe Tax integration available for Payments inside Sub-Accounts when Stripe is connected?
Stripe Tax already supports EU B2B Reverse Charge. If HighLevel collects the customer's VAT ID and billing address and passes them to Stripe Tax, Stripe can determine whether VAT should be charged or whether Reverse Charge applies.
Ideally the flow would be: customer enters billing address + VAT ID → VAT ID is passed to Stripe → Stripe Tax determines B2C VAT / EU B2B Reverse Charge → HighLevel uses the result for the payment and displays the VAT ID, tax treatment and required Reverse Charge information on the invoice/receipt.
This would be much better than rebuilding increasingly complex international tax logic inside HighLevel.
You already built the Stripe Tax integration on the Agency side — bringing the same functionality to each Sub-Account's connected Stripe account could solve one of the biggest remaining issues for EU businesses.
It would also make HighLevel significantly more viable as a true ecommerce/SaaS payment platform in Europe.
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Sales & Marketing
Merged in a post:
Apply VAT Reverse Charge
G
George Liontos
Is there a way to apply VAT Reverse Charge for customers purchasing as businesses? Has anyone successfully implemented a solution for this? Currently there isn't an option for this and its super important feature for saas users
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Hide MyName
Also, Stripe does not get the set tax category for each product from GHL.
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Jennifer Zittier
This is really extremely urgent. The taxes for EU citizens who participate in the OSS process are all presented incorrectly. It is in fact impossible for EU entrepreneurs to use GHL.
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Marcel Hauer
Jennifer Zittier We are using GHL for selling products and the OSS rules seem to apply correctly for us.
Are you sure you are using the correct Tax Category? Works for us with the Tax Category "Digital books sold to an end user with rights for permanent use" and "Digital goods: Videos-Streaming / electronic download".
However, the Receipt doesn't show the Tax Rate in % (see here: https://ideas.gohighlevel.com/invoicing/p/receipts-show-tax-rate), but it uses the correct one at least.
However, B2B - what this ticket ist about - just isn't doable, because Reverse Charge still isn't implemented yet.
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Jennifer Zittier
Marcel Hauer I miss the automatic calculation for entrepreneurs who are part of the OSS program and the option to participate in the OSS program as an entrepreneur in general. These entrepreneurs have raised more than 10k € abroad.
For these entrepreneurs, the tax rates apply based on the buyer's country (if the buyer is based in the EU) & no longer their own country. They report these tax rates per quarter in their financial portal and then pay a collected sum to the OSS. The respective tax office then transfers the funds separately to all countries in which taxes have been accrued as a result of sales.
As described by you above, there are normal tax rates & reductions for eBooks, for example, which must then be stated in% on the invoice.
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Marcel Hauer
Jennifer Zittier Hey Jennifer - the OSS calculation is basically implemented. It is important to use the correct tax code for this. But especially with your given example (ebooks), the calculation is already working correctly. 10% for AT, 7% for DE, etc.
The receipt is also calculated and issued with the correct tax. Unfortunately, the percentage rate is not printed, but only the calculated sum.
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Jennifer Zittier
Marcel Hauer Oh that's great. Would it be possible to add the name OSS to the tax code accordingly? That would certainly be easier for customers to understand than finding out the right tax code. Are the tax codes you're talking about the ones you mentioned earlier?
Digital books sold to end users with rights of use and digital goods: video streaming/electronic download?
When will it be possible to see the% on the invoices?
Thanks so much for the help. LG
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Marcel Hauer
Jennifer Zittier Hi Jennifer, I'm just as much of a user as you and not from the official GHL Support. But I can tell you which tax codes we use.
For e-books:
“Digital books sold to an end user with rights for permanent use” (We use the system in English - but appears to be the same as the one you mentioned)
For physical books:
“Books/Manuals”
For digital products (online course):
“Digital goods: Videos-Streaming/electronic download” (Seems to be identical with yours too)
This gives us the correct tax rates.
Unfortunately, I have no information as to when GHL will print the percentages on the invoice. But I've created an idea to draw attention to it: https://ideas.gohighlevel.com/invoicing/p/receipts-show-tax-rate
Feel free to leave your upvote here as well. Every voice helps.
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Hide MyName
THIS IS VERY URGENT, GHL! Invoicing and selling products in the EU with GHL is LEGALLY not possible as of right now. We need to issue an invoice for each purchase, and tax also needs to be correct.
> The easiest fix would be to enable automatic stripe invoice creation for each product, instead of a simple payment receipt. Stripe already has all requirements to issue a compliant invoice.
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Marcel Hauer
Hide MyName We are using GHL for selling products and the OSS rules seem to apply correctly for us.
Are you sure you are using the correct Tax Category? Works for us with the Tax Category "Digital books sold to an end user with rights for permanent use" and "Digital goods: Videos-Streaming / electronic download".
However, the Receipt doesn't show the Tax Rate in % (see here: https://ideas.gohighlevel.com/invoicing/p/receipts-show-tax-rate), but it uses the correct one at least.
However, B2B - what this ticket ist about - just isn't doable, because Reverse Charge still isn't implemented yet.
H
Hide MyName
Marcel Hauer It's not just about reverse-charge. We also must issue a proper, compliant invoice for B2B with all required data displayed. A receipt is not sufficient. And we can't even create these invoices manually after a purchase, since only "unpaid" invoices can be created in GHL. It's a mess.
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Marcel Hauer
Hide MyName Yeah that's true. Although I think the receipt could be easily be changed into a proper invoice document. It only lacks proper tax rate.
But this also would mean that the GHL Team gives this feature proper care...
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Hide MyName
Marcel Hauer Maybe we're talking about different receipts, but our receipts have full addresses, verified VAT number and other required info missing.
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Marcel Hauer
Hide MyName I'm selling B2C. I guess B2B you would miss at least the customer's VAT. However, address is on it, if we are speaking about Street, ZIP, City, Country.
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Mike Cuypers
This indeeed much needed!!
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Michael Timinger
Instead of adding reverse charge in to "Automated Taxes" it would be sufficient, if we can override the automated tax on product level.
When opting out the Global Tax settings, this should also be valid for the automated taxes. Then we can add a reverse charge tax = 0% on the prodcut level.
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Michael Timinger
It also does not take into account that the tax must be drawn from the destination country.
K
Kasia Wrześniak
Re: "Adding the text to the invoice" - this is already possible.
Payments > Settings > Add Notes / Terms
M
Marcel Hauer
Kasia WrześniakYeah - not conditionally, though. Ideally the text would only be there, if tax Rate is 0%.
We could live with the current general notes feature.
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