Both the UK and the EU use 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 in case there is no VAT exemption for the goods.
VAT rates and VAT exemptions in X-Cart can be set up using one of the following add-ons:
- Value Added Tax / Goods and Services Tax - an add-on for manual configuration of VAT/GST. 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 customer. It also supports tax exemption based on the customer’s VAT ID. See the Value Added Tax / Goods and Services Tax add-on manual.
- AvaTax Sales Tax Automation - an add-on for integration with AvaTax, a sales tax automation service by Avalara. See the AvaTax Sales Tax Automation add-on manual.
For more information, see: