• How do I set up VAT?

    Contributed by wilt

    UK Tax, First of all although it will help UK customers enter their address you do not need to add counties to the database to get the tax to work.

    Heres how to do it, and I am assuming here that you want to have VAT added for goods shipping to any EEC country.

    Admin->Locations/Taxes->Zone Definitions


    Click on insert.
    Name of Zone EEC VAT Zone
    Description EEC Countries Zone for VAT

    Now click on the details button, or the folder Icon next to EEC VAT Zone

    Click on Insert - Select United kingdom for the country - Click on insert
    Click on Insert - Select Germany for the country - Click on insert
    Click on Insert - Select France for the country - Click on insert
    repeat this for all countries in the EEC

    Now goto to Admin->Locations/Taxes->Tax Classes make sure that there is an entry called taxable goods. If not create one.

    Now goto to Admin->Locations/Taxes->Tax Rates

    Click on new tax rate

    Tax Class Title should be - Taxable Goods
    Zone should be - EEC VAT Zone
    Tax Rate - 17.5
    Description - VAT 17.5% or similar
    priority can be left blank - Click on insert


    Note the above assumes you have no zone definitions/tax rates already set up. If you do just delete them.

    Now any goods that you wish to charge VAT on must have their tax class set to Taxable goods. You can do this on the product edit screen.

    Finally, just to be safe. In Admin->Configuration->My Store make sure that the basis of product tax = shipping