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Oleks
Morning everyone! I need your opinion on one small subject. I'm now setting up Paddle, and it has an option of including sales tax in the price or putting it on top. So basically you can make pricing 9.99 + tax or 9.99 including tax ( which means you get way less money ). What is the best approach? In your services do you include tax in the price or put it on top?
MicroFounder, Oleks, +13 others
MicroFounder
I think I would approach it like Gumroad (D. Vassallo) example here. Paddle can do the same. So basically let Paddle handle the tax and add it to the price depending on the buyer’s country.
Oleks
Aha, that is exactly what I was asking about 🙂 Thank you, Rauno!
Kirill
Is there a payment gateway that handles these region specific taxes itself?
MicroFounder
This maybe? https://stripe.com/en-gb-ee/tax
MicroFounder
It also depends a lot on your target audience. European consumers are used to having taxes included, so it will create some confusion if they only show up in checkout. It may even be illegal depending on the country. Except for businesses, prices for businesses are typically given without taxes (or, more commonly, two prices are shown, a larger price without tax and a smaller one with taxes).
Oleks
@U03TYHLJXGB look at http://paddle.com|paddle.com , they handle everything for you at a pretty low price
Oleks
@U03SRLH4XPD I guess I will start with excluding VAT and then if I see some kind of a push back, will include it ( or just raise the prices by 30% :smile: )
MicroFounder
Do you only sell in USD, or does paddle support multiple currencies and you want to use this? Maybe you can include taxes for EUR and exclude it for USD?
Oleks
Paddle supports all major currencies, but you an force certain ones like USD, EUR, GBP so prices are shown in them only ( otherwise Paddle will display local currency and recalculate the price based on their internal rates) . The sales tax setting is per product, not per currency or country.
MicroFounder
Oh, that would really bother me if I would create an app for both EU and US target audiences. As a non-European company you can probably get away without including taxes, but European companies would get a cease&exist quickly.
Oleks
Paddle asks you first about your location and zip code and then decides whether to apply Sales Tax or not. And they also handle the VAT for me, so I don't have to bother with it when I report my taxes.
Kirill
Does anybody have experience with integrating cryptocurrency payment options?
MicroFounder
Don’t have a personal experience with crypto but Coinbase should have everything to integrate payments: https://commerce.coinbase.com