What is the EU VAT plugin in WooCommerce and Why do You Need one for Your Store?
Have you ever tried to calculate VAT rates for each of your customers in the EU manually? Good luck with that!
I am sure there are many more interesting activities you could be using your time for instead of calculating VAT rates manually, that’s why an EU VAT plugin is essential for your e-commerce business.
An EU VAT plugin will help you save your time for more productive activities and will help you be more efficient in using your time for your business.
So let’s dive deep into what is actually the EU VAT and why you need a plugin to handle its calculation.
What is the EU VAT?
VAT (Short for Value Added Tax) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed.
VAT is important especially for the EU as it is considered a major source of revenue for EU member states, helping to fund public services and investments.
The EU has adapted its VAT rules to keep pace with the digital economy, ensuring that VAT is correctly applied to digital goods and services, including those sold across borders.
How to Calculate the EU VAT?
To calculate the EU VAT follow this simple formula:
EU VAT = Net Price x VAT Rate%
Net price is the price of your product or service that you set to make a profit out of providing it to your customers.
VAT Rate depends on your location or the location where the service is fulfilled for your customers, it is at least 15% as per EU rules.
Based on this simple formula you could calculate your gross price which is:
Gross Price = Net Price + EU VAT
The EU consists of 27 countries, and rules and legislation are always changing, so it could be a full-time job just keeping up with accurately calculating your EU VAT for your customers. That’s why smart business owners use Plugins to calculate EU VAT for them.
How Can an EU VAT Plugin Make Your Life Easier as an E-commerce Store Owner?
One word: automation.
Calculating and keeping up with EU VAT isn’t a creative or strategic process that requires human input, it’s a mechanical task that follows a clear and defined process that can easily be automated. That’s why it should be automated to make room for higher-priority tasks and to avoid mistakes and errors as much as possible.
With our EU VAT Plugin, you will be able to:
Real-time and Precise Validation of EU & UK VAT
Streamline the process of EU/UK VAT validation in your WooCommerce store through automation.
With a simple setup, this feature enables the gathering and checking of VAT numbers, automatically updating VAT fees based on the validation outcome.
Ideal for businesses operating within the EU/UK or on an international scale, this plugin equips you with the essential tools for adhering to all pertinent VAT laws, substantially easing the VAT management workload and its inherent complexities.
Enhanced VAT Number Verification
Beyond basic validation with EU/UK databases, this plugin incorporates extra steps for thorough compliance verification.
Adjust the plugin to cross-verify the VAT number’s country with the customer’s billing address, compare company names, and even examine IP addresses for further authenticity checks.
Employing these measures ensures stringent adherence to EU & UK VAT norms, minimizing the chances of deceitful transactions.
Custom-friendly and Flexible User Interface Design
Customize the VAT entry field to align with local terminology, decide its importance, and position it strategically on the payment page. Craft specific messages for different VAT situations to improve transparency at the time of payment.
This functionality not only allows for the personalization of the VAT field label but also the flexibility to set the field as optional or required based on certain criteria.
For instance, you can mandate the VAT field for B2B sales in select regions, and make it always optional, always required, or optional when a customer specifies a company name.
Such customization significantly refines the payment process, making it more adaptable to varied customer needs and geographical nuances.
Conclusion
Calculating VAT is essential when selling in EU member countries and there’s no better way to calculate VAT than our EU VAT plugin, with its competitive features you will be able to set and forget about EU VAT calculation and our plugin will handle all required steps to calculate it for you.