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EU VAT Collection

VAT Collection in the EU region

Viktoria avatar
Written by Viktoria
Updated over 2 months ago

Beginning January 1, 2026, Croissant is required to collect Value Added Tax (VAT) on memberships for customers located in the European Union. The UK is not included in this. This is a government tax, not a Croissant fee.

Below is how this change affects individuals, businesses, and employees expensing memberships.

VAT is charged on all Croissant transactions in the EU, including:

  • Pay-Go memberships

  • Monthly and annual memberships

  • Conference room bookings

  • Private office bookings

  • Bulk hours packages

In short, any purchase made through Croissant in the EU region is subject to VAT.

Individuals

If your account is set up as an individual, VAT will be added to your membership based on your country’s VAT rate.

Example for a €100 membership:

  • Membership: €100

  • VAT (government tax): €20

  • Total: €120

VAT rates vary by country (typically 19–27%).

Do I need to do anything?

No action is required. VAT will automatically appear on invoices starting January 1, 2026.

Businesses

Businesses with a valid EU VAT number may qualify for the reverse charge mechanism. This means:

  • Croissant does not charge VAT

  • You self‑assess VAT in your own country

How to add your VAT number

  1. Log in to your Croissant account

  2. Go to Payment History → Edit Invoice Details

  3. Enter your address and EU VAT number

  4. Save

Your invoice will show:

  • Membership: €100

  • VAT: €0 (Reverse charge)

  • Total: €100

If you don’t add a VAT number, VAT will be charged as if you were an individual.

Employees Expensing to a Company

If you use a company card but your account is set up as an individual, you have two options:

Option 1: Do nothing

  • VAT will be added (e.g., €123 instead of €100)

  • Expense the full amount

  • Your finance team handles VAT internally

This is perfectly acceptable and common.

Option 2: Add your company’s VAT number (optional, but cleaner)

  • Invoice shows reverse charge (no VAT)

  • Easier to expense

  • Finance team receives business‑formatted invoices

How to add the VAT number:

  1. Ask your finance/procurement team for the VAT number

  2. Go to Account Settings → Payment History → Edit Invoice Details

  3. Save

If you’re unsure which option to choose, check with your finance team. Both are valid.

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