How do I configure VAT on WooCommerce?

Consult a tax specialist to learn about your tax obligations and whether you're required to charge VAT.

Printful offers a live shipping rates plugin to calculate your shipping and taxes on WooCommerce. It configures sales tax for North Carolina and California, so you'll have to configure additional VAT settings manually through your WooCommerce dashboard.

  1. In your WooCommerce dashboard, go to Settings → Tax. Here you can configure tax settings for your whole store. Some things to consider:

    - Prices entered with tax. Decide whether the product prices you add will already include tax or not.
    - Calculate tax based on. VAT is calculated based on the customer's shipping address. Sales tax calculations are different for each state.
    - Additional tax class. You should be able to configure most of your taxes in the standard tax class, but you can add additional classes here if needed.
    - Display prices in the shop. Customers in the EU are used to retail prices already including tax. So this might be a good idea to enable if your primary market is the EU.
    - Price display suffix. Add a note next to your prices on whether or not they include tax. If you don't include VAT in your prices, here would be a good place to mention that.
    - Display tax totals. Decide whether you want all of your taxes charged lumped in one sum, or as an itemized list. With VAT, you have to clearly display how much VAT is charged.

  2. Head over to the “Standard Rates” tab. Here you can add VAT rates. 

  3. Add a VAT rate for each country in the European Union.

    - Leave “state code,” “postal code,” and “city” blank so the rate applies to the whole country.
    - Enter the rate to 4 decimal points. The VAT rate you charge must be the same rate for the the country in which you're registered as a VAT payer.
    - Enter the tax rate name (eg. VAT)
    - Check whether the tax is compounded onto other tax rates (it isn't for VAT).
    - Check whether tax also applies to shipping (it does with VAT).

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