Running an online business means dealing with taxes like sales tax or Value Added Tax (VAT). It depends on your products or services and the customer’s location.
If your customers live in the European Union (EU), you likely have to charge Kajabi EU VAT on digital products and services sold.
Sales taxes can be complex and time-consuming to manage, especially when you have customers in multiple EU countries.
Luckily, there’s a solution. This article will show you some software you can connect with your one-stop shop Kajabi store to avoid penalties.
Note: this article is not to be taken as legal advice.
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What Is a Sales Tax?
It’s a consumption tax charged on goods and services. The seller gathers this from customers and then remits it to the government. This tax is also known as VAT.
For instance, EU countries charge an average VAT rate of 21%, according to a 2022 article by the Tax Foundation. However, this is just the average rate, and each EU country has its VAT rate.
The Problem with Kajabi
Although Kajabi is an all-in-one platform, it doesn’t have built-in tax automation.
This means that if you want to sell online courses or services to customers, you need to figure out how much VAT to charge and manually add it to your invoice and price list.
For example, if your Kajabi courses cost €150 and the VAT rate in the customer’s country is 21%, you need to manually add and charge a VAT of €31.50.
If your customers are from different EU countries, it will be impossible to charge VAT rates correctly.
Automating Kajabi EU Vat Calculation and Reports
The good news is that there is some automation software that you can connect with your Kajabi account and make the process more doable.
It is a compatible and highly-secured checkout link that you can use on your Kajabi site, other web pages, and social media platforms to sell your courses.
What’s great about this software besides flexibility is that it offers worldwide tax compliance, including EU PSD2.
It also calculates your taxes and can send automatic receipts to your customers. The other features you’ll love about Quaderno Checkout are:
- Mobile-friendly interface
- First-class customer support
- Alerts for international payments
- Invoices and reports generator
You won’t have any problems using this platform’s checkout and payment method as it’s compatible with most payment processors.
How to Use Quaderno Checkout on Your Kajabi Offers
You’ll need to create Quaderno and Zapier accounts first for this process. Additionally, Quaderno will ask you to link a PayPal or Stripe account, so make sure you have one of those as well.
After you’ve done that, follow these simple steps:
- Open your Quaderno dashboard and create a checkout link.
- Fill out the form with the name of your product and other checkout link details. You can check the meaning of these fields at Quaderno Support.
- Select “Create” once done.
- Copy and paste the link to your own website through a CTA button.
- (Optional) If you want to change the logo and color of your checkout form and invoices, you can click the “Appearance” tab under the “Settings” on your Quaderno dashboard.
- Use Zapier to automate the access to your Kajabi offers.
Unlike Quaderno Checkout, Vatstack focuses on tax automation for customers located in UK and EU. They help digital businesses deal with VAT regulations.
Some of the features customers will love about Vatstack are:
- Automated VAT reports
- Synchronize new rates via Stripe
- Quarterly report reminders
- VAT ID validation in bulk
- Correct VAT price quotes
In short, Vatstack can help you with the entire sales tax process, from collecting to filing.
How to Simply Connect Vatstack
The only way to integrate Vatstack to your Kajabi account is through Stripe.
After creating accounts, here’s what you need to do:
- Go to the “Offers” tab under “Sales” on your Kajabi dashboard.
- Edit your offer by clicking your offer title.
- Click “Edit Checkout.”
- Select the “Form Fields” tab.
- Check “Collect Address” and “Save.” Collecting your customer’s billing address is vital as it’s used to determine the accurate VAT rate.
- Open your Vatstack account and click the “Integrations” tab.
- Tick the box for the read and write access to sync the rates on Stripe automatically.
- Click the “Connect to Stripe.”
- Once you’re Vatstack account is integrated, check the following boxes:
- Vat-inclusive: To state that you included the VAT in the price of your digital products.
- Synchronize automatically: This allows Vatstack to update your Stripe account’s tax rates.
- Amend new invoices: Ensure that your invoices’ VAT is correct.
- Click “Save.”
Taxes are a pain to deal with, but it’s something you have to do as a business owner. You just need to find the right automation software.
Both Quaderno Checkout and Vatstack are great options for Kajabi users. They can both help you with invoicing, reporting, and calculating taxes.
It’s really up to you which tool you want to use as both have their features and benefits. Hopefully, this blog post has helped you relieve some stress regarding tax payments.
If you’re not already a Kajabi user, try them out with our special 30-day free trial link!
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