Tax Rules

Countries

You are able to set VAT (Value Added Tax) rates for each of the countries you ship to, ensuring that every customer pays the right price for your products and/or services - regardless of their geographical location.

Setting a Default VAT Rate activates the tax system. If you are not yet registered to pay tax, you may simply set the Default VAT Rate to zero.

The VAT Countries setting enables you to specify where the Default VAT Rate should be applied automatically. The final option, Manual Selection, enables you to assign an individual VAT rate to each of the countries in the list.

It should be noted that Gross prices, having VAT built-in, are assumed to have VAT applied at the Default VAT Rate. This is removed before any alternative rates are applied. If multiple VAT rates have been configured, the use of Net prices may be less confusing for your customers.

Should you wish, you may deactivate any countries you would rather not appear in the country list during the Checkout process. This will affect both the billing and shipping addresses, and may prevent some orders being placed.

States

You are able to set VAT (Value Added Tax) rates for all of the US states, but only when Manual Selection is used. The VAT rate for the US must be set to zero, otherwise the US rate will be set automatically for every US state.