Setting Up Tax & VAT
Set up all your Tax & tax in this section.
Step 1: VAT/TAX Number
Navigate to Settings > Tax,
Select a country from the "Where is your business based?" drop down menu.
Click the relevant boxes if you need to collect taxes in the UK, US or EU.
Enter your company tax/Tax number (if applicable) into the "VAT/Tax Number" box so it can be shown on invoices and order receipts.
Products Prices include or exclude TAX? Select "Excludes Tax" or "Includes Tax".
And, finally, select Included or Excluded for Tax on Shipping.
If you wish to enter product prices, inclusive of Tax then select "Includes Tax" and the amount of tax will be shown within the checkout's price breakdown.
For example, if you select "include tax" and enter your product price as £10.00, the price breakdown at checkout will show this as:
Cost: £8.33 and tax as £1.67.
You'll also need to select if you need to Exclude or Include tax on your shipping/delivery charges. Within the UK certain Royal Mail services are tax Exempt, however others will be subject to a 20% tax rate. More information on Royal Mail's tax implications can be found here.
Step 2: Product Specific tax rates
It's worth remembering that you can set a specific tax rate for each product that you add.
This is used when a product tax rate differs from the Standard 20% rate, for example, baby car seats (5%) or antiques (exempt).
You can adjust the tax rate of each product individually within the Product Edit page under the Detail panel as shown below or in bulk by using the Product Import feature.