Note that ITERAS can automatically adjust the VAT if the customer’s country is set to something different from the country configured for your company. Country is required to calculate the correct VAT rate. Therefore, be sure to include the country when creating subscribers via the API.
To be able to charge VAT, you must first set a base configuration, which can then be used throughout Iteras.
Primary settings
The first place to configure VAT is under your company’s account settings, where you specify the VAT rates your company can use.
Open the account menu in the top-right corner > choose Primary settings > click the blue button Edit settings for the ITERAS account.
Under Possible VAT rates, you can choose which VAT rates can be used on invoice lines. Note that the top line is the default rate; the others will be available when you make changes. Remember to save the settings.
You can then go to the Business Policy for a given business unit (Account menu > Base settings > Business Policy) and set how VAT should be displayed by default on invoice lines.
In the Invoice texts section, next to VAT on invoice lines, you can choose between Show price incl. VAT on invoice lines or Show price excl. VAT on invoice lines. Remember to save your changes.
Campaign settings
When creating campaigns, under Invoicing > Invoice lines, you can choose whether the price is shown incl. or excl. VAT, and which VAT rate each individual invoice line should have.
Ordering forms
For the order form that customers use to purchase a subscription or membership, you can also set whether prices are shown with or without VAT. The checkboxes are found in the order form settings under the Product choice section.
VAT and International Subscriptions (EU)
If your company sells subscriptions across borders, VAT rules depend on where your business is established, where your customers are located, and whether you sell to businesses (B2B) or private consumers (B2C).
Customers in Your Own Country
All sales to customers in your own EU member state are subject to your domestic VAT rate, regardless of whether the customer is a business or a consumer.
Customers in Other EU Countries
B2B – Business Customers
If the customer provides a valid VAT number, you may issue the invoice without VAT under the reverse charge mechanism.
If the customer does not provide a VAT number, you must charge your domestic VAT rate.
B2C – Consumer Customers
If your total cross-border B2C sales within the EU remain below €10,000 per year (combined across all EU countries), you may continue to apply your domestic VAT rate.
Once you exceed €10,000 per year, you are required to charge the VAT rate of the customer’s country of residence (the “destination principle”).
To simplify this, EU businesses can use the One Stop Shop (OSS) scheme:
You register once in your home country.
You report and pay the VAT due in all other EU countries through a single OSS return.
Your local tax authority then distributes the VAT to the other member states.
This means you do not need separate VAT registrations in every EU country where you have subscribers, as long as you use OSS.
Customers Outside the EU
Subscriptions sold to customers outside the EU are generally exempt from EU VAT (zero-rated), provided you can document that the customer is located outside the EU.
Summary
B2B in the EU with VAT number: invoice without VAT (reverse charge).
B2B in the EU without VAT number: invoice with your domestic VAT.
B2C in the EU:
Below €10,000 in total annual cross-border sales → charge your domestic VAT.
Above €10,000 → charge the customer’s local VAT rate, using OSS.
Customers outside the EU: no EU VAT (but check local rules in the customer’s country).
👉 Always consult your accountant or local tax authority to ensure you comply with the rules in your specific jurisdiction.