WooPayments: Taxes

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WooPayments itself does not contain any functionality related to charging tax on customer purchases. However, WooPayments does have some features that can help when you need to report your sales to your local tax authority.

We are not tax professionals; our advice only applies to how to use our software. For advice on what — or when — to charge tax/VAT/GST etc., we recommend consulting a tax professional or accountant.

Every business is unique, and we are unable to cover all possibilities here.

Important: After September 2, 2025 we will be adding VAT/GST/CT on all fees we charge for WooPayments services. You can find out more on our full fees page.


Note this change only affects transaction fees merchants pay, not how taxes are calculated on customer orders.

Form 1099-K for U.S. merchants

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In the U.S., a Form 1099-K is an information filing required by the Internal Revenue Service (IRS). WooPayments is required to issue a Form 1099-K to U.S. persons if their total payments exceeds a specific minimum threshold.

We have a lengthy guide about Form 1099-K that should answer most questions. Keep in mind, however, that the WooPayments developers and support staff are not tax experts, and as such, there will be certain questions we cannot answer definitively.

VAT invoices for EU merchants

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For EU merchants who may require VAT invoices for WooPayments fees, those are provided under the Payments > Documents menu in your dashboard. (You will not see this menu if your business does not need invoices.) Our Documents page has further details on how to update your VAT info and access your invoices.

If you see 0.00 VAT applied to your fees and the following text on your Tax Invoice:

VAT reverse charged to customer based on Article 196 Directive 2006/112/EC

This means no VAT is added to your invoice because you are a VAT-registered business. You are responsible for self-accounting for any applicable VAT in your country under the reverse charge mechanism.

JCT invoices for Japan merchants

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For Japan-based merchants who may require JCT invoices for WooPayments fees, those are provided under the Payments > Documents menu in your dashboard. (You will not see this menu if your business does not need invoices.) Our Documents page has further details on how to update your JCT info and access your invoices.

Frequently asked questions

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