VAT Information Notice
VAT rates and thresholds shown are based on EU regulations and may change. Rates are subject to change by member states. This is general information only - consult a VAT specialist or your accountant for compliance advice. 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.
- SaaS to EU consumers = VAT at customer's country rate
- B2B vs B2C has completely different rules
- Recurring subscriptions mean ongoing VAT obligations
- Stripe Tax, Paddle, or handle yourself?
- Not sure when VAT registration is required
B2B vs B2C: The Key Distinction
B2B SaaS (Business Customers)
Selling to companies with VAT numbers? Much simpler.
- ✓Reverse charge: You invoice without VAT
- ✓Customer handles VAT in their country
- ✓Just verify their VAT number (VIES)
- ✓Same for EU and non-EU businesses
B2C SaaS (Individual Customers)
Selling to individuals without VAT numbers? More complex.
- ⚠Charge VAT at customer's country rate
- ⚠27 different EU VAT rates possible
- ⚠OSS registration needed (above €10k threshold)
- ✓Or use Paddle as Merchant of Record
Your Options for Handling VAT
Option 1: Paddle (Merchant of Record)
Paddle becomes the seller. They handle all VAT globally.
Option 2: Stripe + Stripe Tax
Stripe calculates and collects VAT. You file returns (or Xolo does).
Option 3: B2B Only (Simplest)
Only sell to businesses. Require VAT number at checkout. Reverse charge everything.
Xolo Leap: EU company for SaaS with VAT handled
Xolo Leap
EU company for SaaS with VAT handled
From €79/month
- EU company accepts Stripe/Paddle
- VAT registration included
- OSS filing for B2C sales
- B2B reverse charge invoicing
- 0% corporate tax on retained earnings
- Works with all payment processors
- Multi-currency support
- Accounting included
No credit card required
SaaS VAT Decision Tree
Is your customer an EU business with VAT number?
Yes → Reverse charge. Invoice without VAT. Done.
Is your customer outside the EU?
Yes → No EU VAT. Invoice without VAT. Done.
Is your customer an EU consumer (no VAT number)?
Yes → Charge VAT at their country's rate.
Options: Paddle (handles it), Stripe Tax + OSS, or limit to B2B only.
Other VAT Scenarios
Related platforms and products
OSS & IOSS VAT Compliance Guide
Everything about One-Stop-Shop and Import One-Stop-Shop for EU VAT compliance.
Amazon FBA Europe VAT Requirements
VAT requirements for Amazon FBA sellers. Pan-European FBA, inventory storage, marketplace rules.
Etsy EU VAT for Sellers
VAT compliance for Etsy sellers. Marketplace collection and handmade/vintage sales.
Dropshipping to Europe VAT Guide
IOSS registration, customs duties, and VAT collection for dropshippers.
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.
