In order to comply with European regulations, products in your webshop have a VAT rate instead of a VAT percentage. This means that you can indicate whether a product falls under "normal" rate, or, for example, falls under a reduced rate such as fruit. As an online retailer you can then set whether you want to calculate the VAT percentage of the country of origin for European customers.
Example: it is currently attractive for a Dutch consumer to buy a product in Germany because the VAT percentage is lower there than in the Netherlands. In the new situation, the Dutch consumer pays 21% VAT on the purchase in Germany because that is the applicable rate in the Netherlands.
Please note: these new European rules are only mandatory if your webshop exceeds the threshold of € 10,000 intra-Community B2C sales. Do you have less than € 10,000 intra-Community B2C sales within the EU? Then you can still use the new rules, but this is not mandatory. Do you want to know how this works when you use the KOR scheme in the Netherlands? You can read more about it Here (Dutch).
To be able to use this new functionality, in the maintenance tool of your webshop, go to Starting point> Webshop> Settings> Order process settings> Select VAT rate based on.
Here you can choose from three options, namely:
- Country of webshop
- Country to which the order will be shipped
- Country of the invoice
Option 1 is the default. This works like the VAT percentage already works in your webshop. The rate is used to determine which VAT percentage corresponds to the country in which your webshop is located..
Example: a product has a "Normal" rate and your webshop is located in the Netherlands. Then the VAT percentage of 21% will be used for the product.
Option 2 is the European preferred option, namely "Country where the order will be shipped to". The country where the order is shipped to is used to determine the VAT percentage.
Example: Your customer orders from Germany and wants his order delivered in Germany. Your webshop is located in the Netherlands. In that case, 19% VAT will be applied if your product falls under the "Normal" rate.
Option 3 is "Country of the invoice". The country of the customer's billing address is used to pay the VAT percentage.
Example: Your customer orders from Germany and wants his order delivered in Germany. However, his billing address is in the Netherlands. 21% VAT is then applied if the product falls under the "Normal" rate.
Set up VAT rates
We use the following VAT rates in our software:Normal
- Low A
- Low B
- Super reduced
We base the VAT percentages per country on the basis of the document below:
There are countries that have two rates under "reduced tariff" in which case it works from high to low. lowA is the higher of the two and lowB the lower of the two.
Belgium, for example, has 2 reduced rates, 6% & 12%. LowA is then 12% & LowB is 6%.
Austria also has 2 reduced rates, 10% & 13%. LowA is then 13% & LowB is 10%.
It is possible that a product in your country, for example the Netherlands, falls at a different rate than in Germany, such as toothpaste. It is now possible to set the correct rate per country. You can select a different VAT rate for each country that you have set up in your zone management.
These exceptions can only be set for countries within Europe that are set in your country and zone management. Also, these cannot be set from the multishop management environment, since it does not have zone management.
Default country for a new order.
The settings are used to determine the VAT for a newly created order, because the customer has not yet entered a country. The following settings are used by: Default selected country in shopping cart, the country and zone management and the company information. If only 1 country is available in the country and zone management, we will use that country. If several countries are available and one of these countries corresponds to the country selected by default in the shopping cart, it will be used. In any other case, the country of the webshop is initially used. As soon as the customer has entered the country on the order, the correct percentage for the relevant country is used.
Do you adjust an order? Then it may be that the VAT rate changes based on the setting. After changing the billing country or delivery country, the correct percentage will be implemented in combination with the setting.
Including and excluding VAT prices in the webshop
Have you set your prices as VAT exclusive? Then the VAT will be added to the price set by you.
Example: A product of € 100 in rate "Normal" will ultimately cost € 121 on the order and / or invoice in the Netherlands, and € 119 in Germany.
This is different for prices including VAT. We calculate the amount excluding VAT. Then the VAT will be applied to the exclusive amount according to the settings.
Example: You sell a product in rate "Normal" for € 121, -. Then in the Netherlands the exclusive VAT price will be € 100.00 (the VAT is therefore € 21.00). If the same product is sent to Germany and the VAT percentage of that country is used, the exclusive VAT price (based on 19%) will be € 119.00 and the VAT € 19.00. This means that you as a web retailer within Europe have the same margins everywhere.
With the arrival of the above functionality, adding and updating products via the API has been expanded. It is now possible to provide the corresponding rate. The percentage is marked as deprecated. This means that it is currently available but no longer supported. If the percentage is included, we determine the corresponding rate. This keeps these resources backwards compatible.
In addition, 2 new resources have been added. These are the tariff exceptions, or the exceptions to a product per country, and it is possible to retrieve the countries from the zone management. This can come in handy when you have an accounting link via the API.
Voor meer informatie zie de API-documentatie.
The accounting apps that support this have additional settings to link the VAT codes per country. You link the available VAT rates per country to the VAT codes in your accounting.
Import and export products
The VAT rate has been added to the import and export functionality. When importing, you can use both the percentage (obsolete) and the rate. This means that if you still use the percentage, the percentage is still available but no longer supported. If the percentage is included, we determine the corresponding rate. During an import, both percentage and rate cannot be used.
Wholesale apps & Dropshipment
Do you use wholesale apps and / or drop shipment? Then the product information is usually supplied with VAT percentages. We will select the rate based on your settings. However, if you sell in multiple countries, you will have to check whether the rates chosen by us also apply to those countries.
Sell outside the EU
If you sell outside the EU, the regulation that the country of sending must be used to determine the VAT percentage will lapse. If you have set the settings to include VAT, the VAT percentage of your country of residence will be used. Do you have the prices exclusive of VAT? Then make sure that this zone does not have VAT.