How do I display prices incl. or excl. VAT and set up VAT shifting?

Step 1: Open the Orders & VAT tab

Go to General options → Webshop and click on the Orders & VAT tab. After making a change, click Update. The VAT rates themselves and the choice of whether to enter prices including or excluding VAT are managed in WooCommerce (WooCommerce → Settings → Tax).

The VAT rate under the price

Enable Show VAT under WooCommerce prices. The rate will then appear small next to the price, for example “(incl. 21% VAT)”. Whether it says incl. or excl. depends on how your store displays prices. For a product without VAT, leflite shows the zero rate.

Show the other price

Enable Show price excl./incl. VAT under the price. If your store shows prices including VAT, the price excluding VAT will also be displayed below. If your store shows excluding, then the price including will be shown below. This way, business customers do not have to calculate themselves.

Shift VAT (reverse charge)

If your customer chooses to shift VAT at checkout and enters a valid VAT number, WooCommerce will deduct VAT from the products and shipping. In Shift VAT/reverse charge for you determine for whom this can apply:

• Nobody: VAT shifting is off.
• EU: customers with an invoice address in an EU country.
• ALL: customers in any country.
• Specific countries: only the countries you specify in Shift VAT/reverse charge only for these countries, as country codes separated by commas, such as BE,DE.

Exclude countries

For EU and ALL, you can exclude countries with Exclude VAT shifting/reverse for, for example NL. Note: The Netherlands is also an EU country. If you choose EU and do not want Dutch businesses to shift VAT, enter NL here. Discuss with your accountant what applies to you.

Only for businesses

Enable Exclude VAT shifting/reverse only for businesses to offer VAT shifting only if the customer enters a business name.

What does your customer see at checkout?

At checkout, a checkbox VAT shifted (reverse charge) and a field VAT number appear. The number is immediately checked in VIES, the VAT register of the EU. The customer sees “Valid” (with the business name) or “Invalid VAT number”. Only with a valid number will VAT be deducted. If VIES is temporarily unavailable, the number counts as valid. The order will then state “VIES not available at order”, so you can check the number later.

Enter your own VAT number in General options → Business details. Then leflite will also store a VIES consultation number with each order, as proof that you have checked the number. See change business details.

More about checkout: calm checkout with No Distraction. Also mandatory for consumer sales: the cancellation button. Everything at a glance: everything about your webshop.

Not working?

• The customer does not see a field for the VAT number. Is Shift VAT/reverse charge for set to Nobody? Choose EU, ALL, or Specific countries.
• VAT is not deducted. Is the checkbox enabled, is the invoice address country correct, and is the number valid in VIES? Also check if the country is not excluded and if the customer has entered a business name if you made that mandatory.
• Dutch customers get VAT shifted. Enter NL in Exclude VAT shifting/reverse for.
• There is no rate next to the price. Check if VAT is enabled in WooCommerce → Settings and if rates are set.

Can’t figure it out? Contact us, call 06 35 66 47 73 or email info@lefcreative.nl.