To collect VAT from EU customers, you must enter rates to collect from each EU member country.
- Navigate to Settings → Sales tax.
- Under VAT countries, add the country in which you operate, and your VAT number for the country. Domestic reverse-charge rules vary country to country, check with your accountant if this is applicable to you. See below for details.
- Add VAT rates for each country. You must add a rate for every EU country in the dropdown.
Customers who enter an EU country in the billing step of the checkout are prompted to enter their VAT number.
- If the customer does not enter a VAT number, the full VAT is always collected.
- If they do enter a VAT number, we check if they're in the same country as you.
- If they are not in the same country, cross-border reverse-charge rules apply, and the VAT is set to €0.
- If they are in the same country as you, we check the Domestic reverse-charge setting which you set in the settings.
- If this checkbox is checked, reverse-charge applies and VAT is set to €0.
- If not, the full VAT is collected.