Setup the most accurate pricing strategy for your online service

New digital goods taxation laws have a huge impact on pricing as they require you to sell at different tax rates. Octobat helps your business deal with this new problematics, giving you tools for a smooth and fast integration.

Tax inclusive pricing

Definition

Tax-inclusive pricing is the most simple billing model you can setup with a traditional payment provider. It consists in charging everytime the same amount whoever your customer is.
But that doesn't mean that sales tax nor VAT do not apply! Octobat helps you splitting the charged amount between revenue and tax you will need to pay.

How to implement?

Simply connect your Octobat account to your favorite payment provider ( Stripe , GoCardless ), filling the required data, and Octobat Sync will do the job for you.
Our built-in forms and API can also help at checkout time, being useful to display the tax rate that will be applied to the transaction.

Octobat checkout

For instance, with a monthly €100 plan, if you sell to a UK end-consumer, he/she will be charged €120 per month (VAT 20%) while a German consumer will be charged €119 per month (VAT 19%), and an Irish consumer will be charged €123 per month (VAT 23%) unless it's a VAT-registered business.

Tax exclusive pricing

Definition

Octobat allows to setup dynamic pricing for your service. It consists in enabling to charge a customer after the right tax amount has been calculated and added on top of the extra tax price, depending on the customer's location, and business type (VAT-registered, end-consumer...).

A way to increment your margin

Adopting tax exclusive pricing guarantees your revenue per sale remain flat, and you won't have to deduce eventual VAT nor sales tax to its value.

How to implement?

As you need to charge your customer at a different gross amount, you must calculate tax before the payment or the subscription is performed.

For Stripe users, the easiest way is to use Octobat Checkout - with tax-excluded option -. Whenever the customer inputs data within this embeded form, tax rate is recalculated by Octobat so you can display it. Checkout is also responsible for taking payments at the right amount on your behalf, so you don't have to code a backend.

If you need more customization in your checkout process, have a look at our built-in forms, and octobat.js library . These components bind a payment form data to our API, so tax rate is calculated on real time whenever your customer inputs its billing data.

To perform calculations on backend, or if you need full control of your flow - for instance, if you need a more than one-stepped checkout process -, our tax calculation APIcan help.

Save time. Save money. Master your billing tax compliance!