VAT setup within EU

  • Resolved marissawaite

    (@marissawaite)


    3 years, 7 months ago

    Hi guys,

    This shop is based in the UK and sells all over Europe (and worldwide). I have this set up with the following tax settings so that we can have the UK charged 20% VAT and everywhere else at 0% VAT (ie not being applied at checkout).

    – Prices are entered inclusive of tax
    – Prices displayed in shop including tax with display suffix (ex. VAT {price_excluding_tax})
    – All country codes and tax entered for 0% VAT in standard rates with priority of 1
    – Recently had to change ‘calculate tax based on…’ option to select ‘shop base address’ as we randomly had the shop prices showing the same for main price and suffix price with or without VAT. However, when testing this doesn’t seem to make a difference.

    For example, we had one order yesterday from Guernsey (set up for 0% VAT) which was still charged 20% VAT at checkout, and another from Poland (set up for 0% VAT) which was also charged 20% VAT at checkout.

    I feel I’ve missed something simple but cannot seem to resolve this, any help at all from you guys would be so appreciated.

    Thanks so much in advance!

    The page I need help with: [log in to see the link]

Viewing 4 replies - 1 through 4 (of 4 total)
  • Plugin Support mcampal – a11n

    (@mcampal)

    Hi there,

    If the option ‘Calculate Tax Based On’ is set to ‘store base address’, taxes are always based on your store location and not your customer’s location. This will result in the 20% VAT always being included at checkout.

    If you want to display the 20% VAT by default but only apply for customers purchasing from the UK, I would suggest setting the ‘Calculate Tax Based On’ option to ‘Customer billing address’ and set the ‘Default Customer Location’ setting from WooCommerce > Settings > General > Default Customer Location to the ‘Shop Base Address’.

    This way the 20% VAT will be included at checkout only if the customer’s billing address is from the UK.

    Hope this helps!

    Best,

    Thread Starter marissawaite

    (@marissawaite)

    Hello!

    Thank you SO much for your help, I really appreciate it. This seems to have solved the issue now.

    The only reason I changed the ‘calculate tax based on’ option is because we were randomly getting both the price and the ex VAT suffix showing the ex VAT price and changing that option was the only thing that seemed to fix it. I will keep an eye on it, but can you please advise if you’ve run into that issue before and if so, how we can solve that please?

    Thanks so much!! Have a great day ??

    Plugin Support mcampal – a11n

    (@mcampal)

    Hi there,

    I’m glad to hear that the problem is solved now ??

    WooCommerce allows shop owners to automatically geolocate customers and display tax rates and shipping methods specific to a customer’s location. In order to determine the correct location for a customer, WooCommerce uses an integration with MaxMind Geolocation.

    I would suggest going through this guide to enable customer’s geolocation with the MaxMind Geolocation Integration:
    https://docs.woocommerce.com/document/maxmind-geolocation-integration/

    Best,

    Hi @marissawaite

    We’ve not heard back from you in a while, so I’m marking this thread as resolved. If you have further questions, please feel free to open a new topic.

Viewing 4 replies - 1 through 4 (of 4 total)
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