Offering prorated refunds is easy until VAT complications hit. Example: User in Germany cancels mid-month, needs adjusted VAT on partial refund. Our payment processor doesn’t auto-recalculate tax. How are you handling this? Custom scripts? Manual adjustments?
Integrated with Stripe’s billing portal. When processing partial refunds via Web2Wave’s dashboard, it auto-calculates VAT adjustments based on remaining period.
Sends updated invoices to users and our finance team. Cut refund processing time from 2 hours/week to 20 minutes.
Built a Google Sheet with EUTable’s VAT rates. When refunding, enter original transaction date, country, and refund amount.
Formulas calculate prorated VAT. Clunky but works for <100 refunds/month. Automating via Zapier next quarter.
Charge monthly. No partial refunds.
Critical to bake this into your subscription system. We use Chargebee—handles pro rata refunds with tax recalculations automatically.
Initial setup took 3 weeks but now handles 100% of cases without manual input. Worth the dev time at scale.