EU taxes (VAT) in Ecwid

If you’re a VAT-registered business based in European Union, you’re most likely required to pay value-added tax (VAT). Ecwid lets you set up your store according to the EU VAT rules:

  • Charge VAT to your customers
  • Apply reverse charge when selling to another EU VAT registered business
  • Display your VAT ID number on invoices

Charge VAT from your customers

To make your store automatically charge the proper VAT amount to your customers, enable the Automatic tax rates in your Ecwid admin, go to Settings → Taxes.

Ecwid calculates the tax rates automatically based on the store and customer's location and includes VAT into product prices. At checkout, the customer will be charged a proper VAT rate according to country and regional tax rules.

Ecwid stays up to date on the current VAT rates, so when the rates are changed, your store will automatically use the new rates with no actions required from your side.

Only standard VAT rates are supported by the automatic calculation scheme at the moment. If you are required to charge reduced rate or have zero-rated products in your store, we recommend disabling the automatic rates and setting up manual tax rates. See how to do that in this article: Manual Tax Setup

Enable VAT reverse charge

If you sell goods to another business and these goods are sent to another EU country, you do not charge VAT. The VAT rules also require you to save a customer's VAT number and make sure it’s a valid EU VAT number. If you sell within one country, you need to charge VAT.

To enable VAT reverse charge for B2B sales in your Ecwid store, go to your Ecwid admin, go to Settings → Taxes, scroll down to Settings and enable the Ask for buyers' VAT ID at checkout option:

vat_id__1_.png

It will add the VAT ID number field at checkout:

Screenshot_2019-11-13_at_14.13.00.png

If a buyer located in another EU country enters VAT ID in the field, the VAT reverse charge will be applied. If a buyer is from your country, the VAT will be charged because such buyers should claim VAT return on their own.

VAT numbers provided by customers will also be saved in the order details for your future reference.

Generate tax invoices

You can generate tax invoices in your Ecwid store using the default invoice template. The default invoice meets the standard invoicing requirements. You can preview it in your Ecwid admin, go to  Settings → Invoice.

After shipping products to a buyer, you can get a printed copy of the order to send it to your customer as an invoice.

To get a printed copy of an order:

1. From your Ecwid admin, go to My Sales → Orders.
2. Find the order in the order list.
3. Click Print Invoice next to the order: 

Screenshot_2019-11-11_at_15.42.57.png

After that you will see the print dialog and can choose to print the invoice or to save invoice as a PDF file

Screenshot_2019-11-12_at_16.23.21.png

If you want to automatically send out such copies to your customers, you can attach them to the Order Confirmation email notifications that your store sends upon order placements. For this, enable the Attach invoices to Order Confirmation email option in your Ecwid admin, go to Settings → Invoice.

You may have some specific requirements for invoicing and probably you are already making invoices separately, for example, in your accounting system or manually using Excel. In this case, you can turn off the automatic invoice generation in Ecwid by disabling the Generate invoices upon order placement option in your Ecwid admin, go to  Settings → Invoice. As a result, invoices won’t appear in front of you in the Ecwid control panel nor they will be visible to your customers.

Display the VAT ID on the order invoice

Show your VAT ID on the invoice

Please find the instruction here:

Adding a business registration number to the invoice

Show buyer's VAT ID on the invoice

The VAT number a customer submits at checkout is printed on the invoice as well as in the order details in your Ecwid Control Panel.

However, if you ever customized your invoice template, it doesn't get to it automatically — in this case you should add it to the invoice template manually. To do that, go to your Ecwid admin, go to Settings → Invoice, click Edit Template and add this code:


  <#if order.customerTaxId?has_content>
<p>${textLabels.taxId} ${order.customerTaxId}</p>
</#if>
Learn more about editing invoice template.

Show buyer's VAT ID in admin email notifications

If the option Ask for buyers' VAT ID at checkout is enabled and order details have the customer's VAT ID number, the VAT ID will be shown in the admin email notifications of the order automatically.

In some cases, if you ever customized your email template, the buyer's VAT ID number in the admin notifications might be missing. You will need to add a corresponding piece of code to the notification template manually. Go to your Ecwid admin, go to Settings → Mail, scroll to Admin Notifications, click Edit next to the New Order Placed notification. Scroll down to "Billing info" and add this code:


  <#if order.customerTaxId?has_content>
<tr>
<td align="left" valign="top" style="font-family: Arial,sans-serif;font-size: 14px;line-height: 18px;color: #333333;padding-top: 5px;">
<b>VAT ID: ${order.customerTaxId}</b>
</td>
</tr>
</#if>
Learn more about editing mail notifications.
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