Menu

EU VAT and invoicing

Hi


Does Thinkific allow EU customers to enter their VAT number (if applicable) and do you generate invoices?


How are EU VAT percentages and EU VAT declarations handled? For context, allow me to link to a KB article on how Teachable handles this:


While we prefer Thinkific over Teachable, if Thinkific does not support EU VAT to the same extent, we'll be forced to switch.

Thanks in advance.


1 person has this question

Hi Joeri!


Happy to help.


Unlike some marketplaces that require VAT on all student purchases regardless of whether the course would otherwise be exempt, Thinkific allows you to charge tax only when it is applicable.


As Teachable's default is to collect payments from students themselves, they are responsible as a company to remit VAT for all sales.


From a digital products perspective, most of the courses on our platform would be VAT exempt due to discussion groups, instructor involvement, etc. (more on that here)


If someone is not exempt for those reasons, and wishes to be VAT compliant, the way to do that would be using our Quaderno integration (available on any plan). This would calculate their VAT amount owing, but would not add tax on top of payments. 


The Teachable system is ultimately more flexible than ours, but still only handles VAT rather than tax in other countries.


If your courses are not exempt from VAT, and you expect most of your customers to be based in the EU, then I think our Quaderno integration would work great for you.


Feel free to get in touch with us directly as I'm sure we can do what you need :)


Thanks!

Catherine


2 people like this

Thanks for your quick response, Catherine.


I've asked our accountant to get to the bottom and advise us on how to proceed.

In the mean time it looks like the we'll go ahead with the Quaderno integration, if only for invoice generation. 


I may get back to you on this in a few weeks.


Kind regards

J.

HI J,


No problem!


If you have any questions/doubts at all, then please don't hesitate to get in touch.


Cheers,

Catherine

Hi Catherine,

I've now tested many integrations and options. If I'm correct, there is no way to be Quebec sales tax compliant with Thinkific, even using Quaderno (the added field is "country" not "region" or "postal code", so you can't use different % for provinces or even states as the solution is setup right now), other than generating invoices by hand through our accounting software.

Am I missing something?

Thanks!

Claudia

Hi Claudia,


How does the tax work for you? As in, will you always be charging the same rate? If so, the simplest option may be to include the tax directly within your pricing.


If you do need to be able to charge tax dynamically, then Quaderno may support different taxes for provinces/states. I'd reach out to their support team just to be sure.


If it's not an option with Quaderno, then you do also have some other options for handling tax. Check out this article for more info.


And if you have any questions at all, please don't hesitate to get in touch. We'll find a solution that works for you :)


Thanks!

Catherine

Hi Catherine,

The tax is province specific. Here's what we need to charge, depending on where our clients are located (for now, i.e. as long as we don't have a lot of clients in BC, we won't charge PST):


Alberta 5%

British Cloumbia 5%

Manitoba 5%

New Brunswick 15%

Newfoundland 15%

Northwest Territories 5%

Nova Scotia 15%

Nunavut 5%

Ontario 13%

Prince Edward Island 15%

Quebec 14,975%

Saskatshewan 5%

Yukon 5%


Quaderno does offer that functionality, but it must be attached to a postal code to work (not a country). I've reached out to them to see if it can be fixed. To be followed... Thanks!


Claudia

Hi Claudia,


Thanks for that extra info! Let us know what Quaderno say and if there's anything we need to do for you on our side :)


Cheers!

Catherine

Hi Catherine


I'm based in the UK and will be selling some purely digital products via Thinkific that will be VAT chargeable in the EU. I use Gumroad for some products and they sort the VAT issue their end. I've heard that Teachable do the same. I love the ease of interface of Thinkific and wondered if making it easier for us the creators is something that you'll be considering?


Kind regards

Rebecca 

Oh and I've recently been using Payhip too for purely digital products...but still prefer Thinkific apart from the EU VAT issue which is a major concern.

Hi Rebecca!


This is definitely on our to-do list but we don't have a timeline yet. You can send your vote for this feature straight to our product team through this link: https://portal.prodpad.com/18563


In the meantime, you can definitely use Quaderno to help you manage VAT on Thinkific. Another option would be to contine using Gumroad and then integrate with Thinkific using Zapier


Hope this helps!

Login to post a comment