B2B Payments

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.

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/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/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:

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: 'pdt_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/{subscription_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:

const session = await client.checkoutSessions.create({
  product_cart: [{ product_id: 'prod_abc', quantity: 1 }],
  customer: { email: 'buyer@acme.com' },
  billing_address: { country: 'IN' },
  feature_flags: {
    allow_tax_id: true,   // default; must be true
    require_tax_id: true
  },
  return_url: 'https://yoursite.com/return'
});

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

Rule	Behavior
`require_tax_id: true` with `allow_tax_id: false`	Rejected with a `400` — the flag would demand a field the checkout never renders
`require_tax_id: true` with `confirm: true`	The request must include a `tax_id`, since `confirm` skips the checkout page
Flag omitted	Defaults to `false`; existing sessions and integrations are unaffected

The requirement is enforced on the checkout page. A confirmation sent directly to the API can still omit the tax_id field, so treat require_tax_id as a checkout experience control rather than a guarantee that every payment carries a Tax ID.

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.

Getting Started

Features

Integrate

Merchant of Record

Miscellaneous

Tax ID Validation for B2B Transactions

Collecting a Business Name for B2B Invoices

Setting it at checkout

Making the Tax ID Mandatory

What Changes at Checkout

Rules and Limits

Tax Treatment for B2C Transactions

Reverse Charge Mechanism

Reverse Charge Applicability

​Tax ID Validation for B2B Transactions

​Collecting a Business Name for B2B Invoices

​Setting it at checkout

​Making the Tax ID Mandatory

​What Changes at Checkout

​Rules and Limits

​Tax Treatment for B2C Transactions

​Reverse Charge Mechanism

​Reverse Charge Applicability

Tax ID Validation for B2B Transactions

Collecting a Business Name for B2B Invoices

Setting it at checkout

Making the Tax ID Mandatory

What Changes at Checkout

Rules and Limits

Tax Treatment for B2C Transactions

Reverse Charge Mechanism

Reverse Charge Applicability