Permalink General remarks

Begin by checking your WooCommerce configurations and confirming that your basic VAT settings are correct. You can then edit your tax classes and rates in WooCommerce or import the tax rates provided as templates.

Permalink Basic configuration of WooCommerce

  • The calculation of VAT must be active
  • Prices displayed in the cart and on the checkout page must include VAT
  • Tax classes and rates must be configured in advance

Permalink How to update tax classes and tax rates

In addition to the usual tax classes Standard and Reduced the EU VAT module requires an additional tax class for digital products in other EU countries.

You can configure tax classes and rates under WooCommerce → Settings → VAT.

In the following section we explain how to update tax classes and tax rates in four steps:

  1. How to save existing tax rates
  2. How to delete old tax rates
  3. How to create new tax classes
  4. How to import new tax rates

If you would prefer to continue to work with your existing tax classes and rates you can also create tax rates manually or adjust the tax class slugs in the CSV file to your existing rates.

Permalink How to save existing tax rates

If you have already created some tax rates (which is more than likely to be the case) you first need to save them by exporting them. Navigate to the VAT page and then to each of the tax classes you have created (they are at the top of the page). Once on the page for the respective class, click the Export CSV file button below the tax rate table and save the CSV file locally on your hard disk.

Repeat the above procedure for each of your tax classes to create a full backup of your tax rates – just in case your first attempt to import them goes wrong.

Permalink How to delete old tax rates

Unclutter the tax page by deleting all existing tax rates: WooCommerce → System Status → Tools → Delete All Tax Rates button.

Permalink How to create new tax classes

Navigate back to WooCommerce → Settings → VAT. Select the Additional Tax Classes option and overwrite the existing tax classes with the following classes:

  • Reduced
  • EU Digital

NB: If you wish to import the dummy tax rates you must not overwrite the existing class labels as this will prevent the correct assignment of tax rates and classes. Alternatively, you can opt to replace the tax class slugs in the CSV file with those of your existing tax classes.

Permalink How to import new tax rates

You are now ready to import the dummy tax rates. Begin by selecting one of your tax classes (Standard, Reduced or EU Digital). It doesn’t matter which class you click – all rates for all classes stored in the CSV file will be imported.

Now click the Import CSV file button under the tax rate table. WooCommerce will redirect you to the “Import Tax Rates” page. Use the Select File button to upload the CSV import file eu-tax-rates-complete-DE.csv (or -AT in the case of Austria) from the subfolder dummy-data in the plugin folder on your hard disk. You can also enter the file path in the field (it is usually wp-content/plugins/woocommerce-german-market/add-ons/woocommerce-eu-vat-checkout/dummy-data/eu-tax-rates-complete-DE.csv).

Finish by clicking the button Upload and Import File at the bottom of the page. Voilà! Your tax classes are now filled with new tax rates for Standard, Reduced and EU Digital products.

Permalink Domestic and EU tax rates

Logic behind tax classes and tax rates

You should already be familiar with the tax classes Standard and Reduced – after all they are a fixture of any Austrian or German shop. (NB: You may not necessarily need to include the Reduced class if you do not plan on selling any products that are subject to a reduced rate of tax).

What is new is that both tax class tables now contain rows for all EU countries, each of which displays identical values:

  • Standard: 19% for all countries
  • Reduced: 7% for all countries

(Or 20% and 10% respectively if you have already imported the Austrian rates).

This configuration sees WooCommerce always calculate VAT on sales to the countries listed in the table at a standard rate of 19% or a reduced rate of 7%. This applies to all products to which the classes Standard or Reduced have been assigned.

Permalink EU tax rates for digital products

In the case of products that the EU directive states must be taxed at the VAT rate valid in the recipient’s country from 2015 onwards it is the rates saved under EU Digital that are to be applied. Although those rates include the rate applicable to digital products in each EU member state, we are obliged to point out that they are only correct to the best of our knowledge and are not legally binding!

Please check the correctness of all tax rates prior to applying them to your shop, making sure to correct any discrepancies identified!

Legal reasons prevent our Support team from answering any questions of a legal nature. We apologize for any inconvenience.

Permalink How to assign new tax classes to your products

The last step in the configuration process is the assignment of the new tax classes to the correct products. You can either use a couple of tricks to edit all your products in bulk on the product summary page or edit each product individually.

Permalink How to change tax rates in bulk

Navigate to WooCommerce → Products and use the selection fields for product categories and types to select the products you wish to include in a joint tax class:

  • Products for the Standard tax class
  • Products for the Reduced tax class
  • Products for the EU Digital tax class

Once you are happy with your selection, mark all of the products selected by clicking the checkbox at the top left of the page. Now click Select action, select Edit and then click the Adopt button to the right thereof.

A dialogue field with which you can edit all of the selected products at once will appear. Do not touch any values other than PRODUCT DATA → VAT class, where you need to select the correct tax class for the products you have just selected and confirm the changes you wish to make by clicking the colored Update button at the bottom-right of the large dialogue field.

Your changes will now be saved – but beware! There is no back button for this change!

Repeat this process with another group of products until you have assigned the correct tax class to all products.

Permalink How to change the tax rate assigned to an individual product

Navigate to the Edit view for the product in question and scroll down to Product Data. Open the General tab, which include the VAT Class option. Select the appropriate VAT class and save the changes to the product. Now make yourself a well-earned cup of coffee!