European Union Taxes (VAT) in Store

If you are a VAT-registered business based in the European Union (EU), you are most likely required to pay value-added tax (VAT). Store allows you to set up your store according to the EU VAT rules:

  • Charge VAT to your customers.
  • Apply reverse charge when selling to another EU VAT registered business.
  • Display your VAT ID number on invoices.

Charge VAT from Customers

To make sure your store automatically charges the proper VAT amount to your customers:

  1. Go to the Store Menu, click Settings, and then click Taxes.
  2. Enable the Automatic tax rates option.

Store calculates the tax rates automatically based on the store and customer's location and includes VAT into product prices. At checkout, the customer will be charged a proper VAT rate according to country and regional tax rules.

Store stays up to date on the current VAT rates, so when the rates are changed, your store will automatically use the new rates with no actions required from your side.

Note

Only standard VAT rates are supported by the automatic calculation scheme. If you are required to charge reduced rates or have zero-rated products in your store, we recommend disabling the automatic rates and setting up manual tax rates.

Enable VAT Reverse Charge

If you sell goods to another business and those goods are sent to another EU country, you do not charge VAT. The VAT rules require you to save a customer's VAT number and ensure it is a valid EU VAT number. If you sell within one country, you need to charge VAT.

To enable VAT reverse charge for B2B sales in your store:

  1. Go to the Store Menu, click Settings, and then click Taxes.
  2. Scroll to Settings, and enable the Ask for buyers' VAT ID at checkout option. This adds a VAT ID number field at checkout and applies VAT reverse charge, when necessary. The customer's VAT number will also be saved in the order details for future reference.

Display the VAT ID on Order Invoices

The VAT number a customer submits at checkout is printed on the invoice as well as in the order details in the Store Menu.

However, if you customized your invoice template, this may not be added automatically. To add the VAT number to the invoice template:

  1. Go to the Store Menu, click Settings, and then click Invoice.
  2. Click Edit Template and add the following code:
    <#if order.customerTaxId?has_content>
    <p>${textLabels.taxId} ${order.customerTaxId}</p>
    </#if>

Display Buyer's VAT ID in Admin Email Notifications

If the Ask for buyers' VAT ID at checkout option is enabled, and order details have the customer's VAT ID number, the VAT ID will display in the admin email notifications automatically.

In some cases, if you customized your email template, the buyer's VAT ID number may not display in admin notifications. To add the buyer's VAT ID to the admin notification template manually:

  1. Go to the Store Menu, click Settings, and then click Mail.
  2. Scroll to Admin Notifications, and next to New Order Placed, click Edit.
  3. Scroll to Billing Info, and add the following code:
    <#if order.customerTaxId?has_content>
    <tr>
    <td align="left" valign="top" style="font-family: Arial,sans-serif;font-size: 14px;line-height: 18px;color: #333333;padding-top: 5px;">
    <b>VAT ID: ${order.customerTaxId}</b>
    </td>
    </tr>
    </#if>