Why Am I Asked to Pay VAT/Tax on Your Checkout?

Since we've started using the PayProGlobal reseller, all our extensions need to be purchased using the PayProGlocal checkout. One thing that sometimes confuses is the tax. 

So here we'll explain how it works to unveil any doubts you might have.

vat number or checkout

Why am I asked to pay VAT/Tax?

After you land on our checkout page you can see the VAT/tax total before submitting an order. That's because you need to be eligible for taxation. 

However, once you enter your VAT/Tax number you won't need to pay the tax.

magefan checkout

I've entered my VAT and I am still asked to pay VAT 20%

Sometimes you might enter your VAT number and still see the VAT (20%) on checkout. Most often it happens with the UK VAT numbers.

vat number on magefan checkout

All B2B orders from the UK go through a company registered in the United Kingdom, namely PayPro Europe Limited.

Thus, according to the established rules, our reseller (PayPro Europe as a UK-based company) is obliged to charge tax from you (also a UK company), since such a sale is considered a domestic B2B sale and requires mandatory VAT collection.

The same goes for Poland. All B2B orders from Poland are processed through PPG DIGITAL Sp. z o.o., one of PayPro Global's entities, which is based in Poland.

Suppliers of goods or services VAT registered in Poland must charge the appropriate VAT rate (23%), and collect the tax for onward payment to the Polish tax authorities.

Please note that the paid VAT can be reclaimed when filing a tax return against HMRC.

If you still have the VAT (20%) on checkout and your VAT is not registered in the UK, please let us know.