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VAT Tax

When we sell products in Europe we must charge 23% VAT. When We sell to the rest of the world we do not charge VAT. Will the order total adjust in the checkout and remove VAT of 23% for customers outside of Europe?

Hi

You need to set up taxes for customers from Europe only in this case. So only these customers will be charged VAT. Please refer to the following article that describes how to set up taxes in Merchium:

Setting up a tax

Thank you.

 

Hi,


Yes we have set up tax like that but the tax is not removed from the order total. This means currently this promising software is not suitable for any EU based business selling worldwide.


VAT TAX should deduct from the order total when an order is shipping outside the EU.


Please let me know if this could be fixed in the future?


Thanks.

Hello

You need to disable the Price includes tax setting on the Administration > Shipping and taxes > Taxes page in your admin panel and set up your product prices without tax. In this case tax will be added to the order only for customers from the countries for which you set up the tax. Please check it.

Thank you.

 

This would not work as legally in the EU we must display prices including taxes. We can not display prices without tax and add the tax at checkout.



Hello,


You can display prices with taxes on the storefront by activating the Estimate taxes using default address on cart/checkout pagesDisplay prices with taxes on category/product pages if the method of calculating taxes is based on a unit's price and Display prices with taxes on cart/checkout pages if the method of calculating taxes is based on a unit's price check boxes on the Settings > Appearance page of your admin panel. Please check it.


Thank you.

Ok, we will try that setup and report back here in a few days. Thanks for the help.

You are welcome, we are glad to help you. 


Please feel free to contact us if you are in need of further assistance.


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