Feature Request: integration with a merchant of record that handles VAT (Gurmoad, Paddle, etc.)

Currently Ghost’s memberships feature integrates directly with Stripe which is a “lower-level” payment provider that doesn’t deal with VAT and other local taxes. Stripe’s core competency is payments and this won’t change anytime soon.

Unfortunately, this means that all Ghost paid newsletter with EU customers are doing something illegal by not collecting and reporting VAT properly.

This not just affects European-based companies! Every company is required to pay the EU digital VAT on EU-based orders. People forget that. Also the Ghost team is obviously aware of just how big of an issue VAT is.

You either have to exclude all European customers or collect and report VAT irregardless of where your business is located.

So it’s quite an important issue that there’s no way to handle VAT (and other local taxes like HST in Canada) if you’re using Ghost unless you’re building a custom payment integration which somewhat defeats the purpose of Ghost’s memberships feature.

But there is an easy solution:

If Ghost would integrate with a merchant of record instead of Stripe the problem would be solved. Platforms like Gumroad and Paddle handle VAT for you. As the merchant of record they collect and report taxes from all customers and the amount you’re paid is like a royalty payment from a book publisher.

Seconding this. In Canada we are required to collect HST/GST on subscription/membership purchases. And, rates vary depending on the province/country the subscriber lives in. I wish I had discovered this issue earlier as it may mean we have to abandon Ghost.

Update, useful for any Canadians who might read this: I’ve contacted the CRA and as long as we aren’t collecting an address from people, place of supply doesn’t apply. But, we have to charge everyone the highest possible rate, which is the 15% in the Maritimes. So, the hack we’re going to begin with is to quote our prices as including HST. This is not an ideal scenario and is potentially troublesome with international subscribers, so, I agree with Jakob that this is a situation that needs to be improved or, at the very least, spelled out in Ghost documentation so potential customers know what they’re getting into.

I think this is better posted in the Ideas category. In that category, people can leave votes for a feature request

Thanks! Just moved it