iThemes Exchange VAT Add-On Updated & Ready for VAT MOSS

If you’re a WordPress ecommerce site admin or owner I’m sure you’ve heard and even seen some of the upcoming changes being made to EU VAT.

The Exchange Team has been hard at work to make sure the EU Value Added Taxes Add-On for iThemes Exchange is updated with the new features and flexibility needed for VAT MOSS.

How EU VAT Worked Before January 1, 2015

Before January 1, 2015 if you sold digital goods online, you only needed to charge taxes at the rate from the EU member state in which your store is registered. For example, if you’re an author in Spain selling your ebooks online, you only needed to charge taxes applicable to Spain. In summary, you charged taxes based on the store owner’s tax rates.

Effective January 1, this will change.

How VAT MOSS Works After January 1, 2015

Online sellers will have to charge tax rates according to where the purchaser lives instead of where the store owner lives. This change applies to any and all ecommerce sites selling to users living within the EU.

From January 1 2015, telecommunications, broadcasting and electronic services will always be taxed in the country where the customer belongs… –European Commission

iThemes Exchange and the EU Value Added Tax Add-On have been updated to reflect the changes, ensuring your Exchange store is compliant with the new regulations.

You’re now able to add tax rates for every member state of the EU right from Exchange, so your store can charge taxes accordingly.

The new VAT regulations apply to digital & downloadable goods such as:

  • ebooks
  • music
  • videos
  • apps
  • games
  • software

How to Add VAT Rates for EU Member Countries

If you already have the EU VAT Add-on installed on your WordPress site, update to v1.1.0.

To add VAT rates, click the gear icon to access the settings screen.

Easy EU VAT in plugin

Select the product type where the settings should be applied, then begin adding VAT rates to the member countries where people can purchase your products. When finished, don’t forget to click Save Changes for your rates to go live on your site.

Add VAT member rates in iThemes Exchange

You can add multiple rates for each country.

Additionally, when editing an individual product, you can enable VAT MOSS and select the rate for each country to be applied to that specific product.

VAT by Product in iThemes Exchange

Additional Resources

  • If you have questions about  updates for the EU Value Added Taxes Add-on for Exchange, reach out via the Support Forum or Twitter and we’re happy to help.
  • For more details on the EU VAT regulation changes check out the European Commission’s site.
  • Scope of changes can be found on GOV.UK.

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