Do you want to visibly reflect the VAT rates you must pay as a business in the prices of your services or products? This guide will teach you to set, adjust, and assign them to services, and products. However, if you are not a VAT payer (you didn't fill in the VAT number in the Company details), you won't see the VAT rates tab and therefore you won't be able to set them.
How to create a new VAT rate?
Open the Sales tab — VAT rates.
Click the blue + New VAT Rate button in the top right corner.
Then fill in all the necessary details:
VAT rate name — your customers won't see it anywhere, it's just for your reference.
Rate — this is the most important information. Enter a number here that will represent, in percentage, the VAT rate you want to set.
Type — choose between added or deducted. You will learn the difference between the two below.
Confirm the addition of the new VAT rate with the blue Save button.
What is the difference between added and deducted VAT rates?
When selecting the type of VAT rate you can choose between added and deducted VAT rates, there is a significant difference between the two. They differ in how the VAT rate is reflected in the price of the services. Below you find a detailed explanation:
Added VAT rate
Added VAT rate
If you select the added VAT rate, the price of the service automatically increases by the set percentage.
In practice, your service costs €100 without the VAT rate. You set the added VAT rate at 20%. The price of the service therefore automatically adjusts and instead of the original €100, the service now costs €120 (€100 + 20%).
On your Booking Website, customers see that the service costs €100, the VAT rate €20 and they pay €120 in total.
Deducted VAT rate
Deducted VAT rate
If you choose the VAT rate deducted, the set prices remain the same. This option is great if you want to show customers the VAT rate, but it doesn’t affect the total they pay.
For example, you have set the price of the service to €100. You choose a VAT rate deduction of 20% for this service. The price of the service remains the same, i.e. €100, with the VAT rate included.
On your Booking Website, customers see the total price of the service - €100. During checkout, they see the price broken down to service price - €83.33 and the VAT rate of €16.67.
How to set the created VAT rate as default?
The first newly created VAT rate is automatically set as the default. It will be assigned to all services, and products offered.
However, if you want to use a different VAT rate as the default, do the following:
Open the selected VAT rate.
Click on the three dots in the top right corner.
Select Set as default.
ATTENTION: Take note when updating the default VAT rate. If you are currently using VAT rate A (for example 10%) and need to set VAT rate B (for example 15%) as the default VAT rate, create it and set it as the default through the three dots. From this point on, the system will see the default VAT rate as B. However the services that had the original VAT rate A assigned will not automatically be reassigned (so they will stay with the original rate A). The system will automatically apply the new default VAT rate B only to newly created products, and services.
Do you need to set a different VAT rate for some products, or services, than the default one?
In this case, you need to assign the VAT rate to the selected product, or service manually.
Open the details of the selected product, or service.
Scroll down a little to see the Price & Taxes sign.
Place the cursor in the VAT rate box and select the type you want to apply to this product, or service.
Now just confirm this setting with the blue Save button.
How to adjust the VAT rate?
If you want to edit the settings of the selected VAT rate (for example, change its name or amount), do the following:
Open the Sales tab — VAT rates.
Select the VAT rate you want to edit from the list of VAT rates.
VAT rate details open, which you can easily overwrite or reconfigure.
When you are satisfied with the change, click the blue Save or Save Changes button.
How to delete the VAT rate?
Open the Sales tab — VAT rates.
Select the VAT rate you want to delete from the list of VAT rates.
Click on the three dots in the top right corner.
Then select Delete VAT rate level.
Confirm the deletion with the red Delete button.
Where can my customers see the VAT rate?
Where can my customers see the VAT rate?
Your customers will see the VAT rate in the product order or when booking or paying for a service. They will see the price and the VAT rate and of course the final amount. However, they will not see the specific VAT rate name that you have set — this is just for your reference.
What if I don't set the VAT rates?
What if I don't set the VAT rates?
If you have a business in the European Union, you don’t have to worry. The VAT rates are set automatically. However, there may be a problem with businesses outside of the European Union, as we don’t provide an automatic VAT rate setup here.
In any case, any VAT rate setup is the responsibility of the owner or manager of the business who manages the VAT rates.