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
For each individual country you can specify a VAT threshold. The setting specifies the value that an order must be below in order for VAT to be charged.
The VAT threshold is set in the country's own currency and converted to your website's local currency at the time the order is placed (to account for any currency exchange rate movements).
To specify 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 an order is placed from a delivery zone where a threshold has been set, a note will be available on the order containing the details of whether or not VAT was charged according to the threshold comparison.
VAT thresholds apply to orders created through your website and when creating orders through your ShopWired account.
