The United Kingdom and the EU use a value-added tax system (VAT). Each European country and the UK has a different VAT rate that can be charged by a merchant only if the business is registered for VAT. A registered business must provide a VAT invoice if there is no VAT exemption for the goods.
You can set up VAT rates and VAT exemptions in your online store using one of the following add-ons:
Value Added Tax / Goods and Services Tax - an add-on for manual configuration of VAT/GST; use it for any country with VAT/GST taxation. The add-on allows configuring different tax rates based on the customer's membership level and address. It also supports tax exemption based on the customer's VAT ID. See the Value Added Tax / Goods and Services Tax add-on manual.
For more information, see: