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I have an application that will charge users a small fee on a monthly basis, but the amount is VAT-able. VAT is changing in January from 17.5% to 20%.

How does Paypal handle this? I can see in the API that you should pass the Tax Amount https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=developer/e_howto_api_nvp_r_CreateRecurringPayments

Does this mean we have to update every recurring payment on behalf of the customers in Jan?

digiguru
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1 Answers1

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The answer is - you have to amend each payment. Great! A way you could do this, is have a table that stores the VAT values by date.

1st January 2010 - 15%
4th January 2011 - 17.5%

Then on the response from paypal after every recurring payment, calculate the days to the next payment, work out if there is a change in tax using the VAT table, if there is then apply a value change to the recurring payment. (sigh)

digiguru
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