tax shipping rates shop location based international selling

Hi @payet75

I have a question regarding tax on shipping rates for international selling

We sell throughout europe and have set the tax so that the rates match the countries we sell to.

Now I want to have the tax on shipping set at our shop location so that the dutch tax rates are calculated for international shipments.

Is this possible, if so how? I’ve already tried with code and plugings searches but I’m getting completely stuck

From what I understand, you’re trying to figure out how to apply Dutch tax rates to the shipping costs for your international orders. You’ve already set up the standard tax rates to align with the countries you’re selling to, but you want the shipping tax to reflect the Dutch tax rates.

Great news, you can indeed accomplish this in WooCommerce. Here’s a simple step-by-step guide:

1. Head over to WooCommerce > Settings > Tax. This is where you’ll find all your tax settings.
2. You’ll notice several tax classes. If you haven’t done so already, create a new tax class called “Shipping“. Just type “Shipping” into the ‘Additional tax classes‘ box and click on “Save Changes“.
3. Next, navigate to the “Standard Rates” and set up a tax rate for each country you’re selling to, just like you’ve done before.
4. After that, head to the “Shipping” tax class you just created. Here, establish a tax rate for the Netherlands with your preferred rate. Leave the “Country Code” field empty, and this will apply the tax rate to all countries.
5. Now, go back to your WordPress dashboard and head to WooCommerce > Settings > Tax.
6. In the ‘Tax Options‘ section, you’ll find a setting named ‘Shipping tax class‘. It’s set to ‘Shipping tax class based on cart items’ by default. Change this setting to ‘Shipping‘.
7. Don’t forget to save your changes.

Here’s a helpful image for reference:

Image Link: https://s11.gifyu.com/images/Sg8oy.gif

This way, the Dutch tax rate will be applied to the shipping costs of all international orders, while the product tax will still match the rates of the countries you sell to. ?? You can learn more about Setting up Taxes in WooCommerce Here

Here’s an example of how it will look on the checkout page:

Image Link: https://snipboard.io/kjpQX6.jpg

I hope this clears things up! If you have any more questions or need further help, don’t hesitate to ask.

Thank you for taking the time to help me. I understand what you mean, but the VAT on shipping is based on the items in the product cart (9 or 21%)

How can I let woocommerce know which VAT rate to take?

Hello @payet75,

Thank you for reaching out!

Just to confirm, you want the shipping tax rate to be calculated based on your store’s address instead of the customer’s tax rate, correct?

For instance, if an Italian customer orders a $100 product, they’re subject to a 21% tax rate and a $20 shipping fee.

You want the total to be $100 + 21%, and the shipping rate to be $20 + your store’s tax rate (not 21%).

If that’s the case, you can achieve this thanks to WooCommerce’s developer-friendly design.

Firstly, go to WooCommerce → Settings → Tax and deselect the Shipping option for all regions.

Link to image: https://d.pr/i/p4103R

This will apply the tax to the product only. You can then add a custom tax for the shipping total based on your store’s rate with the following snippet:

add_action( 'woocommerce_cart_calculate_fees', 'custom_shipping_tax' );
 
function custom_shipping_tax() {
	 // Add 5% tax on shipping
      $tax = 0.05 * WC()->cart->shipping_total;
     WC()->cart->add_fee( 'Shipping Tax:', $tax );
   }

You can use a plugin like Code Snippets

I added 5% as an example, you can change 0.05 value to whatever you like.

The end result is:

Link to image: https://d.pr/i/SJ0xsu

Hope this helps!