VAT features on ShopWired
VAT is a complex area of business activity. ShopWired has a range of features and settings to successfully calculate, account for, and accommodate different areas of VAT for your ecommerce website.
How ShopWired calculates VAT
ShopWired provides two separate methods to calculate VAT in accordance with regulations stipulated by the HMRC's VAT Guide, specifically rules 17.5.1 and 17.5.2. VAT on product and delivery costs is calculated either on the total quantity of a line item in an order or on a single unit of a line item in an order, depending on your setting. Read more.
Entering product and delivery costs
When entering product and delivery costs into your ShopWired account, you can select whether you are entering them either including the VAT element of the price (the GROSS) or excluding the VAT element of the price (the NET). This setting is set on your ShopWired account in your VAT settings.
Displaying VAT on your website
You can select whether to show product and delivery costs to your website visitors either including VAT (the GROSS) or excluding VAT (the NET) using your ShopWired account's VAT settings.
To show both the GROSS and NET price to website visitors, your website's theme code needs to be changed. Contact theme support for assistance in making this change.
VAT zones
For each you can select whether to charge VAT to visitors from that zone. You can also select whether to display product and delivery costs including or excluding VAT depending on the visitor's location or selected currency. Read more about VAT zones.
You can set a VAT rate and for each delivery zone you configure. Read more.
VAT equivalent pricing
When VAT isn't charged to visitors because of their location, you can select (using your ShopWired account's VAT settings) whether to charge the VAT (GROSS) equivalent price.
Custom VAT rates
If you sell products that have a reduced rate of VAT, for example, solar panels or air-source heat pumps, you can configure a custom VAT rate for the product when creating or editing it. Read more.
Zero-rated / VAT exempt products and delivery costs
If you sell products that are either or VAT exempt, you can configure an effective 0% VAT rate for each product when creating or editing it. Read more.
Similarly, when creating or editing delivery rates, you can configure them to have an effective 0% VAT rate.
Automatically modifying the VAT rate of a delivery cost
HMRC's VAT Notice 700/24 stipulates that VAT application to delivery costs follows the supply of goods.
This means that when a visitor's basket contains only products that are zero-rated or VAT exempt, delivery costs should be the same. ShopWired automatically adjusts delivery costs to reflect this rule.
Disability VAT relief
If you sell products where the end user is not required to pay VAT due to their disability, you can configure your ShopWired website to request that visitors declare their eligibility for VAT relief, and VAT will be removed from the cost of products that you have indicated are eligible for VAT relief. Read more.
Not charging VAT to EU businesses
If selling into the EU and you do not need to charge VAT to EU businesses with a VAT registration number, you can use ShopWired's feature to validate a visitor's VAT registration number and, if applicable, remove VAT from the visitor's order. Read more.
Accounting platform integrations
ShopWired integrates with five separate online accounting platforms:
