The European Customer You Almost Lost
You're closing your first enterprise deal in Germany. Legal sends back a 40-page Data Processing Agreement marked up in red. Half the questions reference "GDPR." You Google it and find a regulation that seems designed to terrify American startups.
Here's the reality: GDPR compliance for B2B SaaS is more achievable than the headlines suggest. You're not Facebook—you're not profiling consumers or selling data. You're processing business data to provide a service. The requirements, while real, are manageable.
This guide cuts through the panic to show you what B2B SaaS companies actually need to do for GDPR—no more, no less.
Does GDPR Apply to Your B2B SaaS?
GDPR applies if you process personal data of individuals in the EU—regardless of where your company is located. For B2B SaaS, this typically means:
GDPR Applies If:
- You have customers in the EU
- Your customers' employees use your product
- You store names, emails, or IPs of EU users
- You market to EU companies
- You have any EU-based team members
Key B2B Distinction:
- You're typically a "processor" not "controller"
- Your customer (the business) is the controller
- You process data on their behalf
- This shapes your obligations
- You need a Data Processing Agreement
In B2B SaaS, your customer is usually the "data controller" (they decide what data to collect and why). You're the "data processor" (you process it on their behalf). This distinction matters—processors have different obligations than controllers.
The B2B SaaS GDPR Checklist
1. Data Processing Agreement (DPA)
Why it matters: GDPR requires a written contract between controllers and processors. Every EU customer will request this.
- Standard DPA Template — Create a DPA that covers GDPR Article 28 requirements.
- Subprocessor List — Document all vendors who process EU data on your behalf.
- Processing Instructions — Define what you're allowed to do with customer data.
- Security Measures — Describe your technical and organizational security controls.
- Audit Rights — Grant customers the right to verify your compliance.
Create a self-serve DPA that customers can download and countersign. This speeds up deals and shows you take GDPR seriously. Most B2B SaaS companies post their DPA alongside their Terms of Service.
2. Subprocessor Management
Why it matters: Your vendors are also processing EU data. You're responsible for their compliance.
- Maintain a Subprocessor List — AWS, Stripe, analytics tools, support platforms—all count.
- DPAs with Subprocessors — Ensure each vendor has signed a GDPR-compliant DPA with you.
- Change Notification — Tell customers before adding new subprocessors.
- Assess Subprocessor Security — Verify vendors have appropriate security controls.
3. Data Subject Rights
Why it matters: EU individuals have rights over their data. Your customers (controllers) handle requests, but you need to support them.
- Data Export — Ability to export a user's data in a portable format.
- Data Deletion — Ability to delete a user's data upon request.
- Data Access — Ability to show what data you have about a user.
- Processing Restriction — Ability to stop processing specific user data.
Your customers handle data subject requests—you don't. But you need tools that let them fulfill requests using your platform. If a customer asks you to delete an employee's data, you need to be able to do it.
4. International Data Transfers
Why it matters: Transferring EU data outside the EU requires specific legal mechanisms.
- Standard Contractual Clauses (SCCs) — The primary mechanism for US companies. Include in your DPA.
- Data Transfer Impact Assessment — Document risks of transfers to your jurisdiction.
- Supplementary Measures — Additional technical safeguards (encryption, pseudonymization).
- EU Data Residency — Consider offering EU-only data storage for sensitive customers.
After the Schrems II decision, US companies need more than just SCCs. Include supplementary measures (encryption, access controls) and be prepared to discuss them. EU customers increasingly ask about data residency options.
5. Security Measures
Why it matters: GDPR Article 32 requires "appropriate technical and organizational measures." Your DPA promises these.
- Encryption — Data encrypted at rest and in transit.
- Access Controls — Role-based access, MFA, principle of least privilege.
- Logging and Monitoring — Audit logs of data access, security monitoring.
- Incident Response — Process to detect, respond to, and report breaches.
- Regular Testing — Vulnerability scanning, penetration testing.
6. Breach Notification
Why it matters: You have 72 hours to notify affected controllers of a breach. Speed matters.
- Detection Capabilities — You can't report what you don't detect.
- Notification Process — Document how you'll notify customers within 72 hours.
- Information to Provide — Nature of breach, data affected, remediation steps.
- Contact List — Know who to contact at each customer for breach notification.
7. Documentation
Why it matters: GDPR requires you to demonstrate compliance—not just be compliant.
- Records of Processing — Document what data you process, why, and for whom.
- Security Policies — Written policies covering data protection measures.
- Vendor Assessments — Documentation of subprocessor due diligence.
- Training Records — Evidence of employee GDPR training.
Common GDPR Mistakes B2B SaaS Founders Make
Mistake 1: Treating GDPR Like Consumer Privacy Law
You're not collecting consumer data for advertising. You're processing business data under contract. The controller/processor relationship changes your obligations. Don't over-engineer solutions designed for B2C companies.
Mistake 2: No Self-Serve DPA
Every EU deal will require a DPA negotiation. If you don't have a standard, pre-approved DPA ready to go, you'll spend weeks in legal back-and-forth on every deal. Create a template once.
Mistake 3: Ignoring Subprocessors
"We use Stripe" seems simple. But Stripe is a subprocessor. So is AWS. So is your analytics platform. So is your support tool. Map every vendor that touches EU data and ensure you have DPAs with each.
Mistake 4: No Data Deletion Capability
Customer says "delete this user's data." Can you? Really delete it—from production, backups, logs, analytics? Build deletion capability before you need it.
GDPR vs SOC 2: Do You Need Both?
You probably need both. GDPR is legal compliance—non-negotiable if you have EU customers. SOC 2 is what enterprise customers request to verify your security. They complement each other: SOC 2 provides evidence for GDPR's security requirements.
Quick Start: Your First Week
Day 1-2: Data Mapping
List all personal data you process, where it's stored, who can access it, and which vendors touch it. This map drives everything else.
Day 3-4: DPA Creation
Draft your standard Data Processing Agreement covering Article 28 requirements. Include SCCs for international transfers.
Day 5: Subprocessor List
Create your public subprocessor list. Verify you have DPAs with each. Set up a notification process for changes.
Day 6-7: Gap Assessment
Review data subject rights (export, deletion) capabilities. Identify what you can do today and what needs building.
Next Steps
GDPR for B2B SaaS is about establishing trust with EU customers through clear contracts, transparent data practices, and solid security. It's not about cookie consent banners— your customers' customers see those, not yours.
Start with your DPA. It's the contract that defines your relationship with every EU customer. Get it right once, and you've solved the biggest friction point in EU sales.
Selling to EU companies? vCISO Lite helps you manage GDPR compliance alongside SOC 2 and other frameworks, with DPA templates, subprocessor tracking, and data mapping tools built for B2B SaaS.