This documentation is for Taxamo v1. If your account is with Taxamo v2 use the documentation at integrate.taxamo.com/doc.
If you are uncertain of your version please contact support@taxamo.com for assistance.

What is the difference between b2b/b2c plans and taxed/untaxed plans when using Taxamo's Checkout form?

We will show examples how different types of customers and different Taxamo settings affects calculation and amounts.

Example merchant country: UK (tax rate 20%)
Example EU non-domestic customer from: IE (tax rate 23%)

Example plans used:
“B2C plan” 10€
“B2B plan” 9€

Settings
Customers
  • VAT for domestic transactions - charging
  • Universal pricing
  • VAT for domestic transactions - charging
  • Dynamic pricing
  • VAT for domestic transactions - NOT charging
  • Universal pricing
  • VAT for domestic transactions - NOT charging
  • Dynamic pricing
  • EU B2C customer - non-domestic B2C plan 8.13€
    + 23% EU VAT 1.87€
    Total 10€
    B2C plan 10€
    + 23% EU VAT 2.3€
    Total 12.3€
    B2C plan 8.13€
    + 23% EU VAT 1.87€
    Total 10€
    B2C plan 10€
    + 23% EU VAT 2.3€
    Total 12.3€
    EU B2C customer - domestic B2C plan 8.33€
    + 20% EU VAT
    EU VAT (UK) 1.67€
    Total 10€
    B2C plan 10€
    + 20% EU VAT
    EU VAT (UK) 2€
    Total 12€
    B2B plan 9€
    EU VAT (UK) 0€
    Total 9€
    B2B plan 9€
    EU VAT (UK) 0€
    Total 9€
    EU B2B customer - non-domestic B2B plan 9€
    EU VAT (IE) 0€
    Total 9€
    B2B plan 9€
    EU VAT (IE) 0€
    Total 9€
    B2B plan 9€
    EU VAT (IE) 0€
    Total 9€
    B2B plan 9€
    EU VAT (IE) 0€
    Total 9€
    EU B2B customer - domestic B2C plan 8.33€
    + 20% EU VAT
    EU VAT (UK) 1.67€
    Total 10€
    B2C plan 10€
    + 20% EU VAT
    EU VAT (UK) 2€
    Total 12€
    B2B plan 9€
    EU VAT (UK) 0€
    Total 9€
    B2B plan 9€
    EU VAT (UK) 0€
    Total 9€
    non-EU customer B2C plan 10€
    Total 10€
    B2C plan 10€
    Total 10€
    B2C plan 10€
    Total 10€
    B2C plan 10€
    Total 10€

    Example plans:
    “Taxed plan” 12€
    “Untaxed plan” 10€

    Settings
    Customers
  • VAT for domestic transactions - charging
  • Universal pricing
  • VAT for domestic transactions - charging
  • Dynamic pricing
  • VAT for domestic transactions - NOT charging
  • Universal pricing
  • VAT for domestic transactions - NOT charging
  • Dynamic pricing
  • EU B2C customer - non-domestic Taxed plan 9.76€
    + 23% EU VAT 2.24€
    Total 12€
    Taxed plan 12€
    + 23% EU VAT 2.76€
    Total 14.76€
    Taxed plan 9.76€
    + 23% EU VAT 2.24€
    Total 12€
    Taxed plan 12€
    + 23% EU VAT 2.76€
    Total 14.76€
    EU B2C customer - domestic Taxed plan 10€
    + 20% EU VAT (UK) 2€
    Total 12€
    Taxed plan 12€
    + 20% EU VAT
    EU VAT (UK) 2.4€
    Total 14.4€
    Untaxed plan 10€
    EU VAT (UK) 0€
    Total 10€
    Untaxed plan 10€
    EU VAT (UK) 0€
    Total 10€
    EU B2B customer - non-domestic Untaxed plan 10€
    EU VAT (IE) 0€
    Total 10€
    Untaxed plan 10€
    EU VAT (IE) 0€
    Total 10€
    Untaxed plan 10€
    EU VAT (IE) 0€
    Total 10€
    Untaxed plan 10€
    EU VAT (IE) 0€
    Total 10€
    EU B2B customer - domestic Taxed plan 10€
    + 20% EU VAT (UK) 2€
    Total 12€
    Taxed plan 12€
    + 20% EU VAT
    EU VAT (UK) 2.4€
    Total 14.4€
    Untaxed plan 10€
    EU VAT (UK) 0€
    Total 10€
    Untaxed plan 10€
    EU VAT (UK) 0€
    Total 10€
    non-EU customer Untaxed plan 10€
    Total 10€
    Untaxed plan 10€
    Total 10€
    Untaxed plan 10€
    Total 10€
    Untaxed plan 10€
    Total 10€

    Notes:

    Examples use four different test accounts with different settings combination.

    Domestic transactions are the ones for which customer is from the same country as merchant’s country, in these examples UK.

    To disable charging tax on domestic transaction enable “do NOT charge tax on domestic transactions” setting under Settings page in the portal.

    How to enable dynamic pricing for subscriptions check specific PSP documentation page, Dynamic pricing section: Stripe, Braintree, PayPal. General setting “Force universal pricing” is not applicable for subscriptions, default calculation is done with universal pricing method, if dynamic pricing is not enabled.