Payhip EU VAT and UK VAT Explained
Quick answer
Payhip automatically collects and remits digital EU and UK VAT by default. Decide whether VAT is added on top or included in your price, because the included option cuts your payout.
Most likely fix: Check the Taxes settings
How to fix it
Try these in order — the most common fix is first.
1. Check the Taxes settings
- Open Settings > Taxes
- Leave the first two checkboxes on for automatic UK/EU VAT, or uncheck them to handle VAT yourself
Did this fix it?2. Choose add-on or inclusive pricing
- Add VAT on top: a $10 sale to France lets you keep $9.50 before PayPal fees
- Include VAT in price: the same sale leaves $7.91
Did this fix it?3. US and Canadian sales tax
- Payhip started collecting and paying US and Canadian sales tax from July 1, 2026
Did this fix it?
Symptoms
You are unsure how VAT is charged, why the payout is lower, or how to turn VAT handling off.
Why it happens
- VAT depends on the buyer's country
- VAT included in price lowers the net payout
- Payhip's 5% fee applies to the VAT-inclusive total
- Settings default to automatic handling
This guide also covers
- payhip eu vat
- payhip vat settings
- payhip uk vat
- payhip sales tax
Still not working?
If Payhip keeps failing, you're not alone. See every Payhip problem users report or the alternatives people switch to.
Stop paying for features you don't use
Leaving Payhip? Get your own version instead.
We're a small team of developers who build custom software fast. Your own Payhip alternative with only the features your team uses: one price instead of per-seat fees, your data, on your domain. We move your data over. Or anything else: web and mobile apps, games, desktop software, AI tools, internal tools: whatever you have in mind. We build and run our own products too: booking platforms, games, learning apps. See our work
- Web apps & SaaS
- Mobile apps (iOS & Android)
- Games
- Desktop software
- AI tools & automations
- Internal tools & dashboards
- Client portals & booking
- Your own version of any tool
- ✓ Free 15-min call to scope it
- ✓ Price agreed up front
- ✓ Your data, your code
Other Payhip errors
- Payhip Download Link Not Working
- Payhip Did Not Receive Email or Order
- Payhip Payout Not Received or Payment Missing
- Payhip Can't Connect PayPal
- Payhip Custom Domain Not Working
- Payhip Refund Request: How to Get or Issue a Refund
- Payhip Store Closed or Account Deleted
- How to Cancel Payhip Plan or Delete Your Account