Setting Up VAT Rates in WooCommerce

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builtmighty

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Table of Contents

What is a VAT Rate?

A VAT, or Value Added Tax, is a tax charged on select goods and services in many countries. US-based stores that only handle domestic transactions would not need to set up VAT rates, but online stores with customers in the 166+ countries that charge a VAT – including the European Union – must activate and manage this tax.

WooCommerce Tax Settings

To get started, use the WordPress navigation menu to browse to WooCommerce -> Settings.

From the Settings page, click on the Tax tab.

If you’re only selling goods or services that are subject to VAT, VAT rates can be added under Standard Rates in WooCommerce.

Tax Classes

If you sell some products and services that are not subject to VAT and others that are, you can set up tax classes to cover each type of good/service.

Importing Tax Tables

Whether you are on the Standard Rates page or a newly-created VAT Rates page, you’ll now need to input the VAT rates for each country. You can enter them manually using the “Insert Row” button, or you can import them via a .CSV file using the “Import CSV” button.

If you choose to import a .CSV file, you can import the file from your computer or you can enter the URL of a .CSV file path on a server.

If you need help formatting the .CSV file, you can use the CSV template that comes along with your installation of WooCommerce!