As soon as no VAT is charged during the purchase, it will be in the invoice and the reason is indicated on the checkout page due to legal requirements. Depending on the product type, buyer type and buyer country and the tax table stored, no VAT is shown for some purchases, even if you are subject to VAT.
Example of products with the place of performance in the customer's country:
- A customer from a so-called third country (outside the EU, including Switzerland) buys your product.
- An entrepreneur from the EU with a valid VAT ID buys your product.
- Go to "Settings" and "Invoice setup."
- Provide the text that is relevant to you. This appears on the checkout page and on the customer's invoice.
You are liable to sales tax and use our standard tax tables and these are, in accordance with your tax advisor's agreement, relevant for you, then there is no tax for online services and products to entrepreneurs in the EU or third countries, because here the so-called reverse charge procedure applies. You can see when there is no tax in the default tax templates.
You ticked in your profile that you are not subject to sales tax in your country. Then, when using the default tax templates for purchases from customers in YOUR country, no tax will be charged (e.g. as a small business owner from Germany). Then you provide the sentence and paragraph here. We have already suggested a sample text for small businesses in Germany.
Your courses are generally exempt from VAT (e.g. as a school). Then you provide the corresponding paragraph from the law relevant to you there.
Do not just enter "-" here, because this text is legally necessary for correct invoicing. If anything is unclear, it is best to seek advice from your tax advisor.
The text currently applies to all of your products. However, it can be the case that only one particular offer is always or in certain cases tax-free.
We have therefore planned an update with which you can later provide this setting as a template and then apply it to the product.