Taxes can get complex. Some products are exempt from sales tax, while others have lower sales tax — it all depends on the type of product you’re selling.
And so, to make it easier to accurately report the types of products you’re selling (and charge taxes correctly) we’ve added a new product tax class option in your product settings, both in the Designer and Editor.
Set tax classes per product to more accurately report what types of products you’re selling.
By default, this option is set to “Standard automatic tax calculation” for all products. While you can go in and change the class for each product, you can also select “Exempt from taxes” to not charge sales tax on that product.
In the future, we’ll be adding more options to make setting tax classes across your entire product catalog faster and easier. Have an idea or a request? Let us know.
I can expose the most usual use case we have here in France and that you don’t yet support.
We have reduced VAT rates for different products USAGES. For example, a wall mounted heater is sold with 20% VAT, but the VAT drops to 10% when the heater is bought for a house refit (complete or partial. Other parameters play here too, like you need a pro to handle the task etc but we don’t care for our case).
So it is the same product, but depending on the context of the purchase, VAT changes. With your actual system, I understand I’d have to enter the product twice, which is what we try to avoid in an e-commerce system, right?
So this variable VAT concerns all products and materials to refit a house as long as they’re fixed parts. So it can concern the complete list of products of a shop.
The mechanic can’t be applied to the product, but rather during the shopping cart phase. And you can totally buy a fixed heater, that will get the VAT discount, and a lamp, that will not, with the same cart.
Italy has the same system, so maybe a lot of other European countries.
Apparently for France taxjar x webflow only handles a VAT at 20% regardless of what tax class has been set for a product… This is quite a huge issue since you’d have 5.5% for food / groceries, 10% for appliances installed by a professionnal / 20% for your regular fashion item or finished product. It’s kind of a legal requirement to be able to send a client the tax breakdown at order level…
