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Taxes are not being charged or displayed in an invoice. What’s causing this?

VAT is not shown in the invoices that I generate

VAT validation not getting applied

Summary

Taxes are calculated based on the billing or shipping address information. Taxes will not be applied for the following reasons,

1. Plan/Addon configured is excluded from taxes

2. The billing and shipping address is not present

3. Taxes not applied to the customer record

4. Reverse charge

5. If you are using your own billing page to collect the VAT number (the VAT number should always be passed along the billing address and not with the card address. Both the addresses have to be dealt with separately. To know more, click here.)

Note:

You need to enable "Collect Tax Registration Number from customers" in EU region - for "Valid business customer"

To do that, navigate to Settings > Configure Chargebee > Taxes click on EU region and enable "Collect Tax Registration Number from customers".

Make sure you capture the (minimum) Billing and Shipping address, Country, and State information as Mandatory for the taxes to be applied

To enable address, Go to Chargebee Dashboard,

> Settings

> Configure Chargebee

> Checkout & self-serve portal

> Click Fields

> Billing

> Navigate to Address Fields and click on it

> Enable Country and State 

> Set In checkout and portal as “Mandatory” in Country and State

> Click Apply and Publish

Refer to the screenshot as displayed below,

Checkout with the above configuration enabled:

Chargebee UI:

Invoice (Internal & Public):

Related articles and Documentation

Is 0% a valid tax rate of VAT?

Uploading customized tax settings (CSV)