Not Legal Advice
This guide provides general information only and is not legal advice. Company formation requirements and regulations vary by country and change over time. Consult a qualified legal professional before making business decisions. Information current as of January 2025.
Sound familiar?
These challenges stop thousands of entrepreneurs from getting started. But they don't have to stop you.
- Payment platforms (Teachable, Gumroad) take huge cuts but don't solve your business structure
- EU students expect VAT invoices and compliant billing
- PayPal/Stripe limitations in your country block you from selling globally
- Managing scholarships and payment plans is accounting chaos without proper structure
- B2B clients (companies buying training) need professional invoices
Xolo Leap: Run your education business from anywhere
Xolo Leap
Run your education business from anywhere
From €79/month
- Company setup in 1-2 days
- Full accounting & bookkeeping
- Tax filing included
- Legal address & contact person
- Stripe & payment processor ready
- VAT registration and OSS handling
- Professional invoicing for B2B clients
- Multi-currency support for global sales
- Scholarship and discount tracking
- Annual report and compliance handled
No credit card required
Common Education Business Models
Self-Paced Courses
Pre-recorded content sold on your platform or marketplaces.
- • B2C sales = VAT on customer location
- • OSS simplifies EU-wide compliance
- • Consider Merchant of Record for simplicity
Cohort Programs
Live programs with start dates, community access, and direct interaction.
- • Higher prices = professional invoicing matters
- • Payment plans need proper accounting
- • B2B sales often (company-sponsored)
1:1 Coaching
Personal coaching, mentoring, or consulting services.
- • Services = different VAT rules than products
- • B2B reverse charge applies
- • Retainer and package invoicing
Memberships & Communities
Ongoing subscriptions for community access, resources, or content.
- • Recurring billing needs Stripe/payment processor
- • Monthly VAT obligations
- • Churn tracking in accounting
VAT for Education Products
How VAT Works for Online Education
Pre-Recorded Courses (Digital Products)
Selling to EU consumers? VAT at their country's rate (17-27%). OSS lets you report all EU sales through one country.
Live Coaching/Training (Services)
B2B: Reverse charge — client handles VAT. B2C: Generally taxed where you're based, with exceptions.
Mixed Products (Course + Coaching)
May need to split or determine primary nature. Consult Xolo for proper classification.
Platform vs Own Infrastructure
Using Platforms (Teachable, Kajabi)
- ✓Easy setup, all-in-one
- ⚠Platform fees eat into margin
- ⚠MoR may or may not handle VAT
- ⚠You still need a business entity
Own Platform + Stripe
- ✓Lower payment processing fees
- ✓Full control over pricing and UX
- ⚠You handle VAT (Stripe Tax helps)
- ✓Xolo Leap gives you proper company
Frequently Asked Questions
Everything you need to know before getting started
All information verified as of December 2025. Prices and features subject to change. Always verify current pricing with providers.
