EU taxes (VAT) in Ecwid

If you’re a VAT-registered business based in the European Union, you’re most likely required to pay value-added tax (VAT). Ecwid allows you to set up your store according to the EU VAT rules. This includes charging VAT to your customers, applying a reverse charge when selling to another EU VAT registered business, and entering prices with VAT taxes included. You can also generate tax invoices and display your VAT ID number on the invoices.

Charging VAT from your customers

To make your store automatically charge the proper VAT amount to your customers, enable automatic tax rates in your Ecwid admin, on the Settings → Taxes & Invoices page. See the instructions on how to set up automatic 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 the 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 the standard VAT rates are supported by the automatic calculation scheme at the moment. If you are required to charge a reduced rate or have zero-rated products in your store, we recommend disabling the automatic rates and setting up manual tax rates. See the instructions on how to set up manual taxes

Enabling VAT reverse charge

If you sell goods to another business and these goods are sent to another EU country, you do not charge VAT. If you sell within one country, you need to 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.

VAT reverse charge is available on Business and Unlimited plans.

To enable VAT reverse charge for B2B sales:

  1. From your Ecwid admin, go to Settings → Taxes & Invoices.
  2. Scroll down to Settings.
  3. Enable the Ask for buyers' VAT ID at checkout option.

It will add the VAT ID number field at checkout:

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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.

Entering prices with VAT taxes included

In Ecwid, there are two possible options you can choose from to enter your prices: with taxes included (gross prices) and without taxes included (net prices). If your store is inside the EU, gross prices are a preferable setting as they already include VAT.

For example, if you enter €275 as a price for your product in your Ecwid admin and use gross prices, the price your customers see on the product page in your store is also €275 (as taxes are included). If you enter €275 as a price for your product and use net prices, the price in your store can be €327,25 when the tax is added on top of the net price.

This is how the same price that you entered for a product in your Ecwid admin may look in the cart if your prices are net (left) and gross (right):

EU_taxes__VAT____3_.png

In case you were using net prices that do not include taxes and now want to switch to gross prices, you can do it in your Ecwid admin.

To choose gross prices:

  1. From your Ecwid admin, go to Settings → Taxes & Invoices.
  2. Click Change Pricing Settings:

    EU_taxes__VAT____4_.png

  3. Choose I enter prices with taxes (Gross prices).
  4. Click Save.

That’s it! Now taxable customers will see all product prices and fees, such as shipping, in your store with taxes included.

Note: After you change net prices into gross prices (or vice versa), the prices in your store are not converted automatically. You will need to change them yourself. You can change the prices for all the products in your store using Bulk Product Editor or update the prices in bulk using our CSV import.

Creating tax invoices

You can generate tax invoices for your orders. These tax invoices are legally compliant and meet the standard invoicing requirements for the EU. There are two types of tax invoices available in your Ecwid admin: regular invoices for your sales and cancellation invoices for your refunds.

To preview an invoice that can be generated in your store, go to Settings → Taxes & Invoices → Tax invoices → Contents of tax invoice (the preview is available once the invoices are enabled for your store).

You can always create a tax invoice for an order in your Ecwid admin, on the page of the order in My Sales → Orders:

EU_taxes__VAT____1_.png

All the invoices that have been created for a particular order are available in the Tax invoices section on the page of this order. If needed, you can also download all the invoices for a certain time period in bulk.

If you have some specific requirements for invoicing or if you are making invoices via a third-party system outside of Ecwid, you can turn off Ecwid’s tax invoices in Settings → Taxes & Invoices.

Read more about Ecwid’s tax invoices in our article →

Displaying the VAT ID on the order invoice

Show your VAT ID on the tax invoice

If you are using Ecwid’s tax invoices, you can add your tax registration number to the invoice. See the instructions on adding your tax registration number to the invoice→

You can also specify the taxpayer identification number on your regular invoices (receipts).

Show buyer's VAT ID in admin email notifications

If the option Ask for buyers' VAT ID at checkout is enabled on the Settings → Taxes & Invoices page in your Ecwid admin, 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.

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