WooCommerce Shipping & Tax – Capabilities

Hi, @shameemreza,

How are you?

Thank you very much for this learning opportunity.

As you already know, I am structuring a website to carry out online sales of self-authored e-books to be downloaded, based on: WordPress + WooCommerce.

The business model will be B2C.

Sales countries were specified for:

• The 27 EU member states: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

• United Kingdom (UK).

• United States (US).

The address of my online store was set to Portugal, which is where I live.

The Default customer location was defined: Geolocate (function performed by the MaxMind Geolocation API).

I recently carried out 2 types of tests to observe the application of taxes (VAT) to e-books:

. Test 1: With tax rates (VAT) being applied manually (Standard Rates) for: 27 EU countries + United Kingdom (UK) + 50 States of the United States (US) = 78 rows in the table (CSV).

. Test 2: With tax rates (VAT) being automatically applied by the WooCommerce Shipping & Tax plugin.

Results and Observations:

. Test 1: All tax rates (VAT) were obviously calculated and applied perfectly to the e-book prices.

However, in this case I will have to be constantly (at least once a week) checking, in the official tax sources of each country and American states, any changes in the tax values ​​in order to keep the table (CSV) updated.

. Test 2: With “Automated Rates” all 27 EU countries receive 23% VAT.

In the United Kingdom (UK) it receives 20% VAT.

All 50 states of the United States (US) receive 0% VAT.

However, if we check the information in the following links:

https://www.asd-int.com/en/vat-rates-in-the-european-union-in-2024/

https://www.taxjar.com/resources/sales-tax/states

It can be seen that only 20% VAT for the United Kingdom (UK) would be correct.

DECISION BASED ON TESTS CARRIED OUT:

In my case, at the moment, I understand that the “Automated Taxes” mode of the “WooCommerce Shipping & Tax” plugin does not allow for the mixed need to automatically apply the reduced VAT rates practiced in EU countries when selling e-books ( https: //www.asd-int.com/en/vat-rates-in-the-european-union-in-2024/ ) and at the same time the standard VAT rates for each of the 50 states of the United States ( https: //www.taxjar.com/resources/sales-tax/states ).

Therefore, I decided to guarantee the accuracy of the tax values ​​(VAT) to be applied, through manual insertion, constituting a CSV table.

SUGGESTION:

As everyone who is getting involved and developing their e-commerce projects wants to be able to count on maximum precision/automation of tax data, in order to have their time spent in other sectors of their business structure, I would like to do the following suggestion:

WooCommerce, together with its partners with which it integrates its APIs, in the process of automating tax rates, takes into account the nature of the products (physical and digital) that will be sold online.

Making automated tax rates the result of filtering the countries chosen in conjunction with the nature of the products to be sold, allowing the coexistence of reduced VAT rates (according to the product and country) with “standard rates”.

It will truly be of monumental importance.

Once again, I am very grateful for your special attention, which is always very relevant.

 

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