The B2B Payments feature ensures that merchants processing B2B transactions have their customer’s Tax IDs verified during checkout, ensuring accurate tax application based on the customer’s country and applicable regulations. This validation helps determine whether input tax collection applies or if the transaction falls under a reverse charge mechanism.
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.
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.