Does Kelviq handle reverse-charge VAT for B2B sales?

That was one of the first questions we received when we launched Kelviq.

We weren't surprised.

In fact, we had already heard the same question months before launch while working closely with our design partners.

Here's why.

Sales tax can be configured in two ways:

1. Exclusive pricing
   Product price: $10
   At checkout:

   • Base price: $10.00
   • Tax (18%): $1.80
   • Total: $11.80

2. Inclusive pricing
   Product price: $10
   At checkout:

   • Base price: $8.41
   • Tax (19%): $1.59
   • Total: $10.00

Different countries have different tax rules. A merchant selling in India and Europe needs to collect and report taxes differently for each region.

But the real complexity begins with B2B sales.

In many countries, especially across Europe, if a business customer provides a valid VAT or tax ID, the sale may qualify for the reverse-charge mechanism, meaning the supplier generally does not charge VAT on the invoice, and the customer accounts for it.

With exclusive pricing, this is straightforward, you simply don't add tax.

With inclusive pricing, it's much more interesting.

Should the tax amount be deducted from the displayed price, reducing the amount charged? Or should the merchant keep the final price unchanged?

Different businesses expect different behaviors.

That's why gives merchants the flexibility to configure how inclusive pricing behaves when reverse-charge VAT applies.

These are the kinds of edge cases that rarely make it into product announcements, but they matter every single day for businesses selling globally.