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Tax ID Validation for B2B Transactions

  • If a valid Tax ID is provided during checkout, the invoice will include:
    • The customer’s Tax ID.
  • Tax deductions will be determined based on the applicable regulations for the customer’s country.
  • The invoice will include Dodo Payments’ tax details, along with the tax applied to the transaction.

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Tax Treatment for B2C Transactions

  • Transactions where a valid Tax ID is not provided will be treated as B2C transactions, and tax will be deducted as per the applicable tax regulations in the customer’s country.
  • The invoice will include Dodo Payments’ tax details, along with the tax applied to the transaction.

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Reverse Charge Mechanism

Generally, the supplier of goods or services is liable to pay VAT/Service Tax/GST. However, in specified cases like imports and other notified supplies, the liability is on the recipient (customer) under the reverse charge mechanism. Reverse Charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply.

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Reverse Charge Applicability

  • In certain cases, where applicable by law, tax will not be deducted at checkout and the transaction will be subject to a reverse charge mechanism.
  • The invoice will clearly indicate when a reverse charge applies, as per regulatory requirements.