Check your WooCommerce configuration and make sure your tax settings are prepared for WooCommerce EU VAT Checkout. After that, edit your tax classes and tax rates, or import the sample tax rates shipped with the plugin to get started.
PermalinkUpdating WooCommerce Settings
- Enable Taxes.
- Display prices including tax in the shop and during cart/checkout.
- Apply pre-configured tax classes to products.
PermalinkUpdating Tax Classes and Tax Rates
Additionally to the default “Standard” and “Reduced” tax classes WooCommerce EU VAT Checkout requires a tax class for digital products sold to EU countries.
Settings for tax classes and tax rates can be found at WooCommerce → Settings → Tax.
This is what the required update will look like in a nutshell:
- save (export) your exisiting tax rates (just in case)
- update exisiting tax rates
- create a new tax class
- import new tax rates
PermalinkSaving Existing Tax Rates
If you already use tax rates in WooCommerce (which you probably do), export those exisitng tax rates to have them somewhere save just in case.
Navigate to each one of your tax classes linked at the top of the WooCommerce Tax page. Click the button Export CSV underneath each table and save the CSV file with the rates of that particular tax class to your local hard drive.
Repeat with each of your existing tax classes until all your configured rates are saved on your hard drive.
PermalinkCreating a New Tax Class
Navigate back to WooCommerce → Settings → Tax and add the following class to Additional Tax Classes:
- EU Digital
Heads up! Keep that tax class name as spelled here if you want to import any sample tax rates shipped with the plugin. If you change the class name, imported tax rates will not be assigned to that class.
PermalinkImporting New Tax Rates
Now you can import the sample tax rates shipped with the plugin. Navigate to the editing view of your new EU Digital class and click the button Import CSV underneath the rates table.
WooCommerce will redirect you to an Import Tax Rates page. Choose the CSV import file eu-tax-rates.csv from the sub-folder dummy-data of the plugin folder. Alernatively enter the file path in the field underneath—usually wp-content/plugins/woocommerce-eu-vat-checkout/dummy-data/eu-tax-rates.csv.
Afterwards click the button Upload file and import. Voilá, your tax class EU Digital has now been filled with fresh tax rates for downloadable products in EU countries.
PermalinkLogic of Tax Classes and Tax Rates
Tax Classes for Inland and EU Countries
You will already be familiar with the tax classes Standard and Reduced. They usually apply to every WooCommerce shop setting. (You might be able to waive Reduced if you don’t sell any products a reduced rate would apply to.)
Depending on taxation laws in your country for sales of regular (physical, not-tax-reduced) products to EU countries, you might have to alter those default tax rate tables now.
For example, in Germany taxation with the German Standard rate of 19% is required for regular physical products sold to consumers in other EU countries. In order to have WooCommerce apply the Germa Standard tax class for those physical products, you would now add a row/rate for each EU country, but each of those rows would contain the German Standard rate value of 19%.
Again, that configuration will make WooCommerce apply the same tax rate to sales into all of those EU countries as applicable for regular physical products sold by shops under German juridiction.
Does the same model apply to your country? It depends on your taxation laws. Please find out for yourself.
PermalinkEU Tax Rates for Downloadable Products
For products taxed according to the EU VAT Change of Supply rule from 2015 we need to assign the tax rates stored in the EU Digital class. Those contain the VAT rates for downloadable products in each EU country—to the best of our knowlegde and research, no limit or warranty.
Please check all tax rates before using them in your individual production environemnt and implement corrections if necessary!
Our support staff by law is not allowed to answer any juridical questions. We ask for your understanding.
Assigning the New Tax Class to Downloadable Products
As a last step of configuration you will have to assign your new tax class to your downloadable products. Leverage the bulk editing feature on the Products overview page in your WordPress back-end, or edit each product separately.
PermalinkBulk Editing Tax Classes
Navigate to WooCommerce → Products and use the select fields for product categories and types to make an appropriate selection of those products that will be assigned to your new EU Digital tax class.
Once you have made an appropriate selection, mark all selected products by clicking the checkbox in the upper left corner of the overview table. Afterwards click Bulk Actions, select Edit and click the Apply button.
A new fieldset will open where you can edit option values for all your selceted porducts at once. Don’t touch any values here except PRODUCT DATA → Tax Class: from that select field pick EU Digital for your current selection of downloadable products and confirm your change by clicking the Update button at the bottom right corner of the fieldset.
Your changes will now be saved. Heads up! There is no Undo button for that operation!
PermalinkEditing Tax Classes of a Single Product
Navigate to the Edit view of the particular product and scroll down to Product Data. Right to the General tab you’ll find the Taxt Class option. Choose EU Digital and save your changes. Done!