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 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.
- In the eCom admin, select Settings.
- Select Taxes from the Payment Settings column.
- Toggled off the switch for All prices exclude tax/VAT.
- To ensure taxes appear in your cart and checkout, toggle on the switches for Show tax in cart, and Show tax in checkout.
- In the MANUAL TAX RATES section select Add Tax Rate.
- Give the rate a name. For example, 21% VAT.
- Enter the applicable rate in the Tax field. For example, if you want to specify a VAT rate of 21%, enter a value of 21 here.
- Select Save.
- 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.