So, we’ve recently bought into Docebo and during our testing have found that the integration between Docebo and Stripe seems to assume that the purchase is for ‘personal’ rather than ‘business’ use. Despite asking for a VAT registration number + business details.
Not a problem? Well, actually it is. EU law says basically, if the sale is for “Personal” use, charge local VAT rate. That’s fine. But if the sales if for “Business” use, don’t charge VAT. The customer needs to manage it via the reverse charge mechanism. Here are the rules;
So, when payment details go out of Docebo to Stripe, it apparently doesn’t tell Stripe if the purchase is for personal or business use, so Stripe always assumes ‘personal’ and charges VAT at the local rate.
I can prove this by setting up a payment link directly in Stripe for a course, and testing it outside of Docebo. Stripe handles it correctly because it stops to ask if it’s a business purchase or not.
I’ve spoken to support who have said;
“...tests and the ticket have been discussed with the Business Analyst of the feature, and it is confirmed that only the address/country and product tax code entered for the account during the Stripe Tax configuration by the Superadmin, are relevant.
Indeed we do not send the value of the VAT field of the billing information panel of the user. The implementation of this element is planned, but there is currently no ETA.“
If I’m reading this correctly, they know it doesn’t work correctly, recognise the issue and have no ETA to fix it. In the meantime, everyone charging customers who are making purchases on business corporate cards are being charged VAT incorrectly.
Anyone recognised this, or found a workaround?