Skip to main content
B2B payments let you collect Tax IDs and business names during checkout, validate the Tax IDs, and apply the correct tax treatment based on the customer’s country and regulations.

​
Tax ID Validation for B2B Transactions

When a valid Tax ID is provided during checkout:
  • The invoice includes the customer’s Tax ID.
  • Tax deductions are determined based on applicable regulations for the customer’s country.
  • The invoice includes Dodo Payments’ tax details and the tax applied to the transaction.

​
Collecting a Business Name for B2B Invoices

For B2B purchases, you can have the customer’s legal business name rendered on the invoice instead of the buyer’s personal name. This is collected alongside the Tax ID via the customer_business_name field. When the customer selects Purchasing as a business at checkout, they’re prompted for both a Business Name and a Tax ID Number. The Tax ID is validated live as the customer types. For EU member states, Great Britain, and Australia, checkout performs both format and checksum validation and a live registry lookup (VIES, HMRC, and ABR respectively) and autofills the registered legal business name when a match is found. For all other countries, only format and checksum validation is performed.
Checkout page with the 'Purchasing as a business' toggle enabled, showing Business Name and Tax ID Number fields
The business name appears on the invoice only when all three conditions are met:
  1. The transaction is B2B (b2b = true).
  2. A tax_id is present.
  3. A non-empty customer_business_name is supplied.
If any condition is not met, the customer’s personal name is used instead.

​
Setting It at Checkout

Pass customer_business_name directly, and/or enable allow_customer_editing_business_name to let the customer enter or edit it on the checkout page next to their Tax ID:
customer_business_name cannot be set without a tax_id — the request is rejected. Clearing the tax_id also clears the business name, since the two are coupled on the invoice. Surrounding whitespace is trimmed, and whitespace-only values are treated as an explicit clear.

​
Making the Tax ID Mandatory

By default the Tax ID is optional — the customer decides whether to purchase as a business. If you sell exclusively to registered businesses, set the require_tax_id feature flag on the checkout session to make it compulsory:

​
What Changes at Checkout

  • Purchasing as a business is pre-selected and cannot be unchecked. There is no individual-buyer path on these sessions.
  • Business Name and Tax ID Number are both marked required and must be filled in.
  • Continue to Payment stays greyed out while either field is empty, or while the entered Tax ID is rejected by validation.
Tax ID validation remains fail-open — a lookup outage or an unsupported country never blocks the customer, so the button stays clickable even when it is greyed out.
Passing tax_id and customer_business_name on the session pre-fills both fields, which satisfies the requirement before the customer touches the form. Omit them if you want the customer to supply their own.

​
Rules and Limits

A blank or whitespace-only tax_id counts as missing, both on the confirm: true guard and when a hosted-page session is confirmed.
On a hosted checkout page (confirm: false), the requirement is enforced in the browser. The API rejects a blank Tax ID on confirmation, but it cannot tell an individual buyer apart from a business buyer who omitted the field, so treat require_tax_id on hosted sessions as a checkout experience control rather than a guarantee that every payment carries a Tax ID. A confirm: true session is a stricter case: it is always treated as a business purchase and is rejected outright without a Tax ID.

​
Tax Treatment for B2C Transactions

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

​
Reverse Charge Mechanism

Generally, the supplier of goods or services is liable to pay VAT, Service Tax, or 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 in respect of notified categories of supply.

​
Reverse Charge Applicability

In certain cases, where applicable by law, tax is not deducted at checkout and the transaction is subject to a reverse charge mechanism. The invoice clearly indicates when a reverse charge applies, as per regulatory requirements.
Last modified on September 25, 2026