Previously VAT rates can be set in a number of different places in Cloud Commerce Pro which, although it allows for greater flexibility, can be extremely complicated at times.
To simplify the process while also bringing it inline with modern accounting standards, we will be introducing the ability to apply a default tax treatment on a product by product basis. Treatments such as standard rate, reduced rate, super reduced rate and many more will be easily selectable from a new widget on your product page.
This guide will walk you through the process of changing your VAT treatments for specific products in Cloud Commerce Pro.
1. Admin Centre
From the Admin Centre in Cloud Commerce Pro, click the Products button.
2. Product Search
On the Product Ranges screen, use the search function to find the product you want to add or edit the tax treatment.
Alternatively, you can use the alphabetised list and browse for the product.
3. Product Range
Tax treatments are set on a product by product basis. Select the product variation from the products list, as shown below.
4. Product Variation
On the Product Variation screen, click the Edit button next to "Tax Treatments".
5. Tax Treatments & VAT Rates
The first drop down box allows you to set the default tax treatment for this product. This sets what tax treatment is used for this product in all EU countries.
The system applies these treatments to all countries intelligently, instead of using one specific VAT figure. For example, if your default is standard rate, a product sold in the UK would have 20% VAT applied, but that same product would have 25% VAT when sold in Sweden. The system will adjust the VAT rate to match the rate for whatever country it is sold in, ensuring the VAT is always correct as long as the right treatment has been selected.
6. Add New Country
It is also possible to add exceptions to the default treatment for as many countries as you require.
This is important to be aware of as not all countries use the same treatment for each product. For example, children's clothing in the UK is zero rated for VAT. However, in Denmark they use standard rate (25%) for children's clothing.
Click the Add New Country button.
7. Country Specific Tax Treatments
Two blank drop down boxes will be added to the widget.
On the left you can select the country you want to add a treatment override for.
On the right you select the specific tax treatment for your override. This will also display the correct VAT rate for that treatment in the country you have selected.
Continue to add as many country overrides as you needed by hitting the Add New Country button and repeating the process.
Be sure to click the Save Changes button before closing the widget, otherwise you will lose all changes made.
8. Tax Treatment in Other Parts of CCP
In addition to adding tax treatments to existing products, there are also multiple places in the system where they can be added while creating new products.
Creating new products from the Products screen:
Adding a quick product from the Order From Stock screen:
Work is also in place to add tax treatments to the sales channel view of Cloud Commerce Pro. Keep an eye out for our postings via the Intercom chat widget to stay up to date with new changes as they happen.