How do I charge VAT or sales tax per country?

How VAT works

This page is about the VAT your customers pay on their orders. It is not the VAT that can be added when you top up your own Storeep wallet: that one comes from the Country field on the payment window and has nothing to do with your markets. See Wallet and billing.

You set one VAT rate per market (country). VAT is added to an item only when both are true:

• The customer's market has a VAT rate above 0%.
• The product has Taxable turned on.

VAT is added on top of your prices. It shows as its own line in the cart, at checkout, and in the order, between shipping and the total. When there is no VAT to charge, the line is hidden.

Setting the VAT rate of a market

1. Go to Settings > Markets and click the market.
2. Click VAT. The top shows the current rate, for example Current VAT rate is 20%.
3. In VAT rate, type the percentage as a number: 20 for 20%, not 0.20. Decimals like 7.5 are fine.
4. Click Save. You see "The VAT has been updated successfully".

The rate must be between 0 and 100. Type 0 to stop charging VAT in that country. A new market starts at 0%. Repeat these steps for each country where you charge VAT.

Marking a product as taxable

New products are not taxable. To charge VAT on a product:

1. Open the product in Products.
2. Go to the Options tab and turn on Taxable.
3. Save the product.

One Taxable switch covers every market. The rate is what changes from country to country.

How VAT is calculated

At checkout, Storeep adds up the price of the taxable items in the cart and applies the market's VAT rate to that amount. Items that are not taxable add nothing to VAT. The result is rounded to the nearest cent.

The order total is: subtotal, minus any discount, plus shipping, plus VAT. The VAT amount is saved on the order, so it stays the same even if you change the rate later.

VAT is charged the same way with the normal checkout and with fast checkout.

Examples

• Market rate 20%, one taxable product at 100: VAT is 20, total 120 plus shipping.
• Same cart in a market at 0%: no VAT line.
• Cart with a taxable product at 100 and a non-taxable product at 50, rate 20%: VAT is 20, not 30.

Common problems

• VAT does not show in the cart: check that the market rate is above 0 and that the products have Taxable on. Both are needed.
• VAT shows for one country but not another: each market has its own rate. Set it in the other market too.
• I want prices that already include VAT: Storeep adds VAT on top. To show tax-included prices, include the tax in your product price and leave Taxable off, or set the market rate to 0.
• VAT is wrong on one product only: check that product's Taxable switch.