You can create a manual tax rate to charge Value-Added Tax (VAT) for your online store. VAT rates in eCom affect products, payments, and shipping methods. Make sure you consider these points, depending on the location of your eCom store and your customers:

• Inside the EU - The VAT rate you set up will be applied to orders from customers in other countries in the EU.
• Outside the EU - The VAT rate you set up will only be applied to orders from your own country. For example, you may be from Australia, the UK, Switzerland, Mexico, etc.
• Canada or the United States - You have different tax features. Setup instructions for your region are available in Enabling taxes - USA or Canada.
• Shipping to the UK - eCom is designed to automatically charge VAT for these customers.
• Verify the correct tax rates - Contact the local government. For example, entrepreneurs from the Netherlands can visit the Dutch Tax Authority.
• Regional overrides - You can specify a unique tax rate for a particular shipping destination.

Enabling taxes

1. Navigate to Settings > Taxes.
2. Deactivate the All prices exclude tax toggle option.

   

3. To ensure taxes are displayed in your cart during checkout, enable the Show tax in cart, and Show tax in checkout toggle options.

   

4. In the Manual tax rates section, click Add Tax Rate to display the Add tax form.

   

5. Enter a Title for the rate, for example: VAT.
6. Enter the applicable rate percentage in the Tax field.

   

7. Click Save.
8. If you use several rates, you can choose one as the standard rate by clicking Default. This default rate is automatically applied to all new products that you add.

   

Updating solar panel taxes (NL)

Netherland-based businesses selling solar panels require different taxes for private individual customers (0% tax) and business customers (21% tax). These taxes can't be set up through product import.

For larger businesses, set the taxes up through an API. Contact your Customization Partner for more information.

To manage solar panel taxes for private and business customers:

1. Navigate to Products.
2. Use the filters to find and select the solar panel product variant.
3. In the Inventory & Variants section, click the title to display the Edit variant window.
4. In the Prices section, click the Tax rate dropdown, and select the 21% Solar panel tax rate.
5. Click the Tax Type dropdown, and select Solar Panels (NL).
6. Click Save.

With this configuration, private individual customers in the Netherlands will automatically be charged 0% tax on solar panel purchases. Other customers, including businesses in the Netherlands and customers in the EU, will still have a 21% tax applied to their solar panel purchases.

If you need to apply solar panel taxes in bulk:

1. Navigate to Products
2. Use the filters to find and select the solar panel product variants.
3. Select Edit from the Items selected dropdown.
4. In the Inventory & Variants section, select the Tax checkbox.
5. For the Are all the values the same? dropdown, select Yes.
6. Click Save.

What's next?