Tax ID Validation for B2B Transactions
- If a valid Tax ID is provided during checkout, the invoice will include:
- 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.
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 business name appears on the invoice only when all three conditions are met:
- The transaction is B2B (
b2b = true)
- A
tax_id is present
- 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:
const session = await client.checkoutSessions.create({
product_cart: [{ product_id: 'prod_abc', quantity: 1 }],
customer: { email: 'buyer@acme.com' },
tax_id: 'GB123456789',
customer_business_name: 'Acme Corp Ltd',
feature_flags: {
allow_tax_id: true,
allow_customer_editing_business_name: true // optional: let the customer edit it
},
return_url: 'https://yoursite.com/return'
});
| Surface | Field | Notes |
|---|
| Checkout Sessions | customer_business_name, feature_flags.allow_customer_editing_business_name | Max 250 chars; flag defaults to false |
| Payments | customer_business_name | Max 250 chars |
| Subscriptions | customer_business_name | Set or clear via PATCH /subscriptions/{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.
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.
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.
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.
