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How to set shipping VAT rules in WooCommerce

Existing shipping zones, options, and classes in your shop do not require adjustments after integration with EAS, provided that 3rd party plugins associate rates with zone and use an internal WooCommerce shipping engine.

All shipment costs that are included in the order, for orders sent to the EU irrespective of OSS or IOSS schemes, must contain VAT. Shipping costs are legally considered incidental costs and shall have VAT rates applied as per the same level as VAT rates applicable to the merchandise. If the order contains items with a standard and reduced VAT rate applied, EAS will apply the same rates to shipment proportionally to the cost of delivery.

The following table explains the VAT calculation for a B2C shipment to France: 

VAT exclusive pricing
  Cost (EUR) Shipment cost proportionally to the item cost (EUR) VAT rate Total VAT
Item 1 100 20 20 24
item 2 50 10 10 6
Total shipment cost 30      
Total merchandise and shipment (EUR) 180  
VAT (EUR)   30
Total order (EUR)   210
         
         
         
VAT inclusive pricing
  Cost (EUR) Shipment cost proportionally to the item cost (EUR) VAT rate Total VAT
Item 1 100 20 20 20
item 2 50 10 10 5.46
Total shipment cost 30      
Total merchandise and shipment (EUR) 154.54  
VAT (EUR)   25.46
Total order (EUR)   180
 

For more information, contact us at support@easproject.com