If you’re a VAT-registered business based in European Union, you’re most likely required to pay value-added tax (VAT). You can set up your store according to the EU VAT rules:

  • Charge VAT to your customers.
  • Apply reverse charge when selling to another EU VAT registered business.
  • Display your VAT ID number on invoices.

Charging VAT from your customers

You can use automatic tax settings to calculate the tax rates automatically based on the store and customer's location and include VAT into product prices. These tax settings use standard general sales tax rates, which are updated regularly. At checkout, the customer will be charged a proper VAT rate according to the country and regional tax rules.

To enable automatic tax rates:

  1. Add your company address in your Control Panel → Settings → General → Store profile.
  2. Enable automatic tax calculations in your Control Panel → Settings → Taxes:

Once the automatic tax rates are enabled, your store will automatically charge the proper VAT amount to your customers.

Only standard VAT rates are supported by the automatic calculation scheme at the moment. If you are required to charge a reduced rate or have zero-rated products in your store, we recommend disabling the automatic rates and setting up manual tax rates. Please, refer to this article: Setting up taxes.

Enabling VAT reverse charge

If you sell goods to another business and these goods are sent to another EU country, you do not charge VAT. The VAT rules also require you to save a customer's VAT number and make sure it’s a valid EU VAT number.

To enable VAT to reverse charge for B2B sales in your store:

  1. Go to your Control Panel → Settings → Taxes.
  2. Scroll down to Settings and enable the Ask for buyers' VAT ID at checkout option:

It will add the VAT ID number field at checkout and apply the VAT reverse charge when necessary. The customer's VAT number will also be saved in the order details for your future reference.

Generating tax invoices

You can generate tax invoices in your store using the default invoice template. The default invoice meets the standard invoicing requirements. You can preview it in your store admin, go to Settings → Invoice.

After shipping products to a buyer, you can get a printed copy of the order to send it to your customer as an invoice.

To get a printed copy of an order:

  1. From your store admin, go to My Sales → Orders.
  2. Find the order in the order list.
  3. Click Print Invoice next to the order

4. After that you will see the print dialog and can choose to print the invoice or to save an invoice as a PDF file:

If you want to automatically send out such copies to your customers, you can attach them to the Order Confirmation email notifications that your store sends upon order placements. For this, enable the Attach invoices to Order Confirmation email option in your store admin, go to Settings → Invoice.

You may have some specific requirements for invoicing and probably you are already making invoices separately, for example, in your accounting system or manually using Excel. In this case, you can turn off the automatic invoice generation by disabling the Generate invoices upon order placement option in your store admin, go to Settings → Invoice. As a result, invoices won’t appear in front of you in your store control panel nor they will be visible to your customers.

Displaying the VAT ID on the order invoice

You can enter the taxpayer identification number of your business that is displayed on the invoice.

To include VAT ID on the invoice:

  1. From your store admin, go to your Settings → Invoice.
  2. Scroll down to the Taxpayer identification number, then click Edit.
  3. Insert the information to the editable field:

4. Save changes.


Once added, the VAT ID number will be included the information on all customer invoices.

The VAT ID number will be also included in the footer of all email notifications sent to your customers.

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