What is location evidence and why is it so important?

If you are selling digital products, the EU VAT regulations require that you collect at least two pieces of non-conflicting location evidence for your customer, so that you can be sure where they are and thus which country's sales tax to apply to the invoice item(s).

Note that this is also true for US businesses selling to EU customers, as of January 2015.

The three pieces of important location evidence you can collect are:

  • Account or billing address country
  • IP address country
  • Payment method country (e.g. thet BIN/INN for a credit card)

Quaderno will accept this information from the payment methods we integrate with (check the articles on customising them to see more about sending us things like IP address), as well as through our API, for custom calls. We'll also take into account the customer address info that you provide for the Quaderno customer record.

If we do not have two pieces of non-conflicting location evidence, we will alert you of this for the invoice in question,

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