Glossary Item Box

Squirrelcart v4.1.0

VAT (Value Added Tax)

Overview

The following information is a general overview of VAT. This information is copyright European Communities, 1995-2005, and was obtained from this URL:

http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/vat_on_services/index_en.htm

When entering your prices in the control panel, you should enter them before VAT. Squirrelcart will add VAT as needed.

As of version 3.4.0, Squirrelcart will display prices inclusive of VAT by default. If the customer is exempt from VAT or in a country that does not require they be charged for VAT, they will see prices without VAT.


Enabling VAT

  1. Specify your company's address in the Company Information section of the Store Settings page. Be sure to set your country to one of the European Union countries or VAT will not work.
  2. Click Settings > Sales Tax > VAT in the control panel menu
  3. Click record #1, labeled Main Location. This represents the address you entered in Store Settings.
  4. Check the VAT Enabled field. The VAT section will then appear below
  5. Specify decimal values for each VAT rate. These rates are specific to your country.
  6. Click Save Changes
VAT may also be enabled for additional warehouses by following the same steps. See the Warehouses topic for more information.

 

Designating VAT Rate for Products

At the Category Level

  1. Open the category you want to work with
  2. Set the Tax Items field to yes
    The VAT Rate field will appear
  3. Specify the VAT Rate for this Category
    All items in the category will be charged this VAT Rate according to the rules of VAT.


At the Product Level

  1. Open the product you want to work with
  2. Set the Tax Item field to yes
    The VAT Rate field will appear
  3. Specify the VAT Rate for this product


VAT Exemption

When shipping goods from one EU member state to a different EU member state, the customer can receive VAT Exemption if they provide a valid VAT registration number. Exemption is NOT allowed under any cirumstances if the goods are being shipped to the same country as they are being shipped from.

Enabling VAT Exemption

  1. Open the Address Form Settings page
  2. Check the VAT_Registration field, in the Shipping Fields and Account Fields sections
      
  3. Click Save Changes

This will allow the VAT Registration field to appear on the address forms. If a customer enters a valid VAT registration number, they will not be charged VAT.

 

Squirrelcart validates the format of VAT registration numbers only. It cannot check with the VAT authority to validate the number. Validation is based on the formats shown here:

http://www.europa.eu.int/comm/taxation_customs/vies/en/faqvies.htm#item11

 

 

 

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