Why am I being charged VAT?
If you were charged VAT, it means that the VAT ID wasn't entered before during checkout.
Entering VAT ID During Checkout
During checkout, you can enter in your business VAT ID, and if the business VAT ID entered is valid, you would receive an immediate exemption through the reverse charge schema.
If during checkout, your total bill still included the VAT, you can view your downloadable invoice and use that to claim the VAT back manually from the relevant VAT authority of your home country.
Entering VAT ID After Checkout
If you were not able to add your VAT ID prior to purchasing, you can still do so when you are logged in your WP Interactions account in https://wpinteractions.com/account/. You can enter in your VAT ID in your details and you will see it reflected in your downloadable invoice.
This can be used to claim the VAT back manually from the relevant VAT authority of your home country.
Renewals
If you added your VAT ID prior to checkout, your future renewals will also be exempted from VAT. Adding the VAT ID after checkout will not remove the VAT in future renewals, but it will still be claimable.
Why do we charge VAT?
We handle VAT as required by the EU regulations.
Since Stackable is based in the Philippines and outside the EU, we are not required to charge VAT from businesses in the EU. They will account for the tax in what is called a 'reverse-charge mechanism.'
However, we are required to charge VAT from consumers based in the EU. In this case, each sale must be taxed differently according to the VAT rates in the consumer's country.
How is VAT handled?
Our payment processing partner - Freemius, handles all our payments and licensing.
Freemius handles the collection of all applicable taxes from your customers, ensuring a seamless transaction process. Subsequently, they meticulously report and remit the required taxes to the relevant European taxation authorities on our behalf. This includes both the European Economic Area (EEA) and the United Kingdom (UK).
For more information about how EU VAT is collected, you can visit this page: https://freemius.com/wordpress/collecting-eu-vat-europe/