Posts on topic: UK VAT

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Setting Up Tax for International Locations

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International Tax - Online Sales Setup

Many customers sell internationally, and some jurisdictions are now enforcing the payment of local tax for online sales from other countries. Recently New Zealand made that change

Online Store Setup

You need to setup a new tax area for the UK and set GST to 20% for that tax area:

The method of making  the changes is similar in eCorner NOW and eCorner Cloudshops.

eCorner NOW Platform

now-tax-settings

eCorner Base or Cloudshops Platform

base-tax-settings

  1. Settings menu >> Tax calculation >> Tax matrix >> Tax area – add a new tax area for UK

    Tax_areas

 

  1. Settings menu >> Tax calculation >> Tax matrix >> Tax area >> Assignment of countries – find the UK and assign to Tax area “UK” as created above

    assignment-countries

 

  1. Settings menu >> Tax calculation >> Tax matrix >> Products – find the new Tax area and set the GST to 20%.

    taxmatrix-products

 

The examples assume that the tax model is GST included and that all products include GST. Check that GST is included in products at:

 

  1. Products menu >> Products >> select and open any product >> List prices, Order unit, Tax class section >> Tax class – this should show GST.

    product-gst

    NOTE: If the default Tax class is No GST (0%) then the UK VAT 20% needs to be added to that Tax class.

NOTE: The term “VAT” will not show in the order documents but rather it will be “GST” as per Australian tax requirements.

More Information on UK VAT

You can find more information about registering for VAT and requirements at:

https://www.gov.uk/vat-registration/when-to-register

https://www.austrade.gov.au/contact/faqs/i-want-to-export-my-product-to-the-eu-including-uk

https://www.gov.uk/government/publications/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021

At the moment there is no feature that enables UK VAT to be limited based on order value. Once setup as above 20% tax will be applied to all orders. In most cases you can remit the VAT collected to your logistics provider to cover the VAT at the border at time of importation.

 

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