How to Set Up EU VAT Taxes in SureCart
In this article, we will show you how to set up EU VAT taxes in SureCart.
We’ll help you understand how to enable EU VAT taxes and various tax options for this region.
Let’s begin!
What is EU VAT
If you sell products to customers in the European Union (EU) or EU collection obligation, you may need to comply with EU VAT regulations.
VAT stands for Value Added Tax, and it’s a consumption tax applied to goods and services in the EU.
The rules can be a bit complex, but we’ll break it down for you in the below section.
How EU VAT Works in SureCart
Now, let’s move on to the setup of your EU VAT Settings.
Now, let’s move on to the setup of your EU VAT Settings.
EU VAT Settings will become visible only after you’ve enabled the Tax Collection option from the Store Tax Settings section.
The following section shows up after you turn on the above settings.
Here, you can manage how your store handles EU VAT collection and validation.
Within this section, there are three important settings to note:
Require VAT number: Businesses or legal entities registered for VAT use this unique identifier number. Enabling this option will show customers a field to enter an EU VAT number when they’re purchasing through a checkout form.
Local reverse charge: Local reverse charge is when the customer, not the supplier, pays the VAT on a transaction. Enabling this option allows you to apply reverse charges when customers add valid VAT numbers, even if customers are in their home country.
VAT Number Verification Failure: In this setting, you can choose the behavior your checkout will display when VAT verification fails. You have three options:
- Reject the order and show an error.
- Accept the order but don’t apply the reverse charge.
- Accept the order and apply the reverse charge.
We hope this helped you. If you have any questions, please don’t hesitate to contact our support team. We’re here to help!
Note:
Please note, this article isn’t intended to provide tax advice. We’re simply here to explain the available features and guide you on how to best use them for your SureCart-powered eCommerce store. For any specific tax obligations you may have, we strongly recommend consulting a tax expert.
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