Both 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. It can be used for any country with VAT/GST taxation. The add-on allows configuring different tax rates based on the membership level and address of the custome. 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: