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VAT & Taxes

VAT - Value Added Tax - is a form of consumption tax popular in Europe, Japan, and most other countries except the US. VAT taxes the difference between the purchase price and the resale price, .e. the value added.

In DynamicWeb you can handle VAT using the following:

System VAT is typically only used on single-country solutions, so leave it empty if you need more than one delivery country. In almost all cases you should focus on setting up Country VAT & VAT Groups where relevant.

During checkout, VAT is calculated based on the billing country with the most specific VAT rate being applied; VAT Groups > Country VAT > System VAT. In some scenarios it is required that you calculate vat based on the delivery country - you can enable this and other more advanced VAT settings using our advanced Prices settings.

Please also check out our guide to Reverse charge for VAT

Taxes

In the US and select other countries VAT is not in effect. In those cases you can use our tax settings to create an integration to a custom tax provider such as Avalara AvaTax or Vertex.

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