VAT zones
Charging VAT
If you sell products/services to customers in countries where you don't need to charge VAT, you can use ShopWired's VAT zones feature to indicate whether or not VAT is charged to those customers.
This setting is configured for each delivery zone you have created within your ShopWired account.
To toggle whether or not VAT is charged for a delivery zone:
- Navigate to the Delivery rates page in your ShopWired account
- Select the menu (
...) option for the delivery zone and selectsettings - Use the Charge VAT setting to select whether customers choosing that delivery zone are or are not charged VAT
- Select Visitors from this delivery zone should be charged VAT to charge VAT to visitors selecting the delivery zone
- Select Visitors from this delivery zone should not be charged VAT to not charge VAT to visitors selecting the delivery zone
Changing the VAT rate
Changing the VAT rate
By default, each delivery zone for which you charge VAT will apply VAT at the standard VAT rate set in your ShopWired account's VAT settings. You can change the rate of VAT charged for each delivery zone by editing the delivery zone's VAT settings:
- Navigate to the Delivery rates page in your ShopWired account
- Select the menu (
...) option for the delivery zone and selectsettings - Use the VAT rate setting to set the rate of VAT (you can specify VAT rates up to 4 decimal places)
Setting a VAT threshold
Setting a VAT threshold
You can set a ) for an individual country configured as a VAT-charging delivery zone. Where VAT would otherwise apply, ShopWired charges VAT when the basket’s item subtotal is at or below the threshold and does not charge VAT when it is above the threshold.
- ShopWired compares the basket item subtotal excluding VAT with the threshold, rather than the order grand total
- This subtotal includes products and any gift vouchers purchased as basket items, but excludes separately calculated delivery charges
- Discounts applied directly to items affect the subtotal
- discounts applied only to the order total do not
The threshold is entered in the country’s currency. If your website’s base currency differs, ShopWired converts the threshold into that currency when the basket is recalculated, using its stored exchange rates. Those rates are normally refreshed daily.
To set a VAT threshold:
- Navigate to the Delivery rates page in your ShopWired account
- Select the menu (
...) option for the delivery zone and selectsettings - Use the Do not charge VAT when the order value is above setting to set the VAT threshold
When a VAT threshold is calculated for an order, the order record shows the threshold and whether it was exceeded. VAT thresholds are also used when creating an order through your ShopWired account.
