If your business is located in Europe or Australia, you can enable manual tax rates to manage the tax rates for your online store. VAT rates apply to products, payments and shipping methods in eCom.

NOTE: You can also specify a unique tax rate for a particular shipping destination or for tax-exempt customers.

IMPORTANT:

Click here if your store is located in the United States or Canada.
It is not recommended to have manual and automatic loads configured at the same time.
To ensure that you are charging the correct tax rates, it is recommended that you check with your local authority. Entrepreneurs from the Netherlands can, for example, go to the website of the Nederlandse Belastingdienst .

Add a tax rate

In the left menu of the back office, click on Settings > Payment settings > Taxes.
Under TAX SETTINGS, the option for All prices exclude VAT should be disabled.
NOTE: If you mainly sell to other companies (B2B), enable this setting to display prices excluding VAT. This function is only visible if you have installed the B2B module.
To ensure that taxes are displayed in your shopping cart and at checkout, set the options for Show VAT in basket and Display VAT at checkout to enabled.
In the MANUAL TAX RATES area, click Add tax rate.
Give the rate a name, such as 21% VAT or a name that is clear to you. For example the Netherlands.

Enter the applicable VAT or tax rate in the Tax field. For example, if you want to specify a VAT rate of 21%, enter the value 21 here.
If you use different rates, you can choose one as the standard rate by clicking on Standard. This standard rate is automatically applied to all new products you add.
Click Add regional tax rate if the country has a regional tax. Regional taxes mainly occur in North America and are rarely used in Europe. For example, the Netherlands has a national tax that does not differ per province, namely 21%.
Select a country and region and add a Tax Name, Tax Rate, and Tax Type.
Click Save to add the regional tax and repeat these steps for each region.

Regional Taxes - Create a Custom Tax

Custom taxes are used to charge taxes to customers from another country. You must use thresholds to determine whether you are required to charge taxes for customers outside the country of your eCom store.

Here are some examples where you may need to specify custom taxes:

Taxes adjusted to comply with EU VAT regulations
Products exempt from taxes

For example, you MUST charge the VAT rate of the customer's country if one of these situations applies to you:

Your annual sales to customers or entrepreneurs who do not file a tax return exceed the thresholds for that country, as set by the tax authorities.
OR
Your annual sales to organizations that are not legally classified as entrepreneurs exceed the country thresholds set by the tax authorities.

This is only necessary if your sales to a particular country exceed the threshold of that country. If your sales are below the threshold or if you only sell within your own country, you don't need to configure custom taxes.

In the left menu of the back office, click on Settings > Payment settings > Taxes.
Click on the name of the tax for which you want to create an exception, such as children's clothing.
Click Add regional tax rate.
Configure the exception:
- Country – Select the country you want to apply the exception to.
- Region - Optionally select a region.
  NOTE: You only need to adjust this option if a province/state tax is different from the country's tax.
- Tax Name – Enter a name to which the variance applies, such as VAT.
- Tax Rate - Enter the tax rate applicable to the country where the threshold is reached.
- Tax Type - Select how the rate is applied.
Click Save to apply the adjusted tax. The tax rate you configured will be applied to all new orders from that country.