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Automatic VAT & Tax Handling at Checkout

Artur Binzaru avatar
Written by Artur Binzaru
Updated today

Introduction

Automatic Tax / VAT handling allows Cademy to calculate and apply VAT at checkout automatically, based on:

  • where your business is registered,

  • whether the customer is an individual or a business,

  • the customer’s billing country,

  • and the type of course being sold.

Once enabled, VAT is calculated in real time during checkout and shown automatically in all price summaries. Course providers do not need to manually apply or adjust VAT per booking.

This article explains:

  • how to enable Automatic Tax / VAT Handling,

  • how VAT is calculated at checkout,

  • how course-level tax settings work,

  • what customers see,

  • and common setup and troubleshooting questions.


Availability and requirements

Automatic Tax / VAT Handling is available on:

  • Teams plan

  • Enterprise plan

It is currently supported for businesses registered in:

  • United Kingdom

  • Netherlands


Enabling Automatic Tax / VAT Handling

Step 1: Enable Tax / VAT at account level

Path: Settings → Payments → Tax / VAT

Steps:

  1. Enable Tax / VAT

  2. Enable Automatic Tax / VAT Handling (BETA)

  3. Select your Country of tax registration

    • United Kingdom, or

    • Netherlands

  4. Save changes

Once enabled, Cademy automatically applies the correct VAT logic at checkout.


Course-level tax configuration

Tax Course Type

Different course types may have different VAT treatment.

Path: Courses → select a course → Settings → Payments

Here you can configure:

  • Tax Course Type (e.g. training service)

  • This overrides the default tax behaviour for that specific course

Use this when:

  • selling different types of courses (in-person, online, on-demand),

  • or when tax treatment differs by course format.


How VAT is calculated at checkout

VAT is calculated automatically during checkout using:

  • the billing country entered by the customer,

  • whether the customer registers as an individual or a business,

  • your tax registration country,

  • and the course tax type.

VAT updates instantly if the customer changes:

  • billing country,

  • or registration type (individual ↔ business).


VAT rules applied automatically

Individuals (private customers)

  • VAT is always added, regardless of customer location.

Business customers

Business in the same country as the course provider

  • VAT is added

Business in the EU (cross-border)

  • VAT is not added

  • Reverse charge applies

  • VAT ID validation is not required for checkout to complete

Business outside the EU

  • VAT is not added


What customers see at checkout

During checkout:

  • VAT appears automatically in the price summary

  • VAT recalculates in real time

On the confirmation page:

  • VAT is shown correctly in the final total

  • Customers receive a standard confirmation email


Frequently Asked Questions (FAQs)

Why is VAT being added automatically?

Because Automatic Tax / VAT Handling is enabled and the customer’s details require VAT to be applied.

Why does VAT change when the billing country changes?

VAT is calculated using the billing country entered at checkout. Changing the country updates the VAT calculation instantly.

Why is VAT not applied to a business customer?

Because the business qualifies for VAT exemption based on location (for example, EU reverse charge or non-EU business).

Can customers complete checkout without a VAT number?

Yes.

VAT ID validation is not required for checkout at this stage. The transaction will still complete successfully.

Can I override VAT behaviour per course?

Yes.

You can override VAT behaviour using Tax Course Type:

Path: Courses → select a course → Settings → Payments

Why is VAT not applied even though Tax / VAT is enabled?

Check the following:

  • Automatic Tax / VAT Handling is enabled

  • A tax registration country is selected

  • The customer is not a VAT-exempt business

  • The course tax type is set correctly

Is Automatic Tax / VAT Handling available on all plans?

No.

It is available only on Teams and Enterprise plans.

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