We’ve received a number of queries over the past two weeks about how to change tax settings in Gravit-e systems for the new VAT arrangements selling to the EU post-Brexit. To help everyone get ready for the new trading arrangements in 2021, we’ve prepared this short set of notes on how to change the key settings in your Gravit-e system.
We are not able to provide business specific advice on how you should handle VAT and recommend you consult the official government advice on exporting goods to the EU after the Brexit transition period.
Further queries should be discussed with your accountant or other tax advisor and with your back office provider for any changes to your accounting/ERP system.
How to Change VAT on shipping to EU countries
If you are currently accounting for VAT on shipping to EU countries in Gravit-e and need to change this, this can be changed on a rule-by-rule basis through your content management system.
Go to “Shipping Rules” in your Gravit-e system to see your shipping rules. Each shipping rule has an independent VAT setting, look for this option on your EU shipping rules:
Unticking this option and saving the rule will stop Gravit-e from treating the shipping method as VATable.
Remember that all shipping method pricing in Gravit-e is entered into the system as a Gross value so you may also want to alter the price of your shipping at this time.
How to change VAT on products for EU countries
Gravit-e has a built in matrix of countries where VAT will, and will not, be applied that can be used to activate/deactivate VAT rules based on the shipping or billing country. You may have already updated this matrix to match your business requirements as part of your implementation. Moving forward, you may need to change the contents of this matrix for EU countries depending on your VAT liabilities in individual EU countries and the VAT configuration of your Gravit-e system.
If you currently recalculate VAT in Gravit-e based on the shipping or billing country, we recommend that you review and update this matrix. You can check your tax configuration in Gravit-e on the Taxes tab of your eCommerce Settings.
You can request a copy of your system VAT matrix by raising a support call with us.
Handling EU VAT Registrations
In addition to country-level settings you may also be allowing B2B customers to be treated as VAT-exempt by providing an EU VAT Registration number. If you need to remove this functionality, tick the “Ignore Customer EU VAT Registration” option in your tax settings:
We are handling customer requests for support with changing VAT settings through our normal support channels. Unfortunately, we are not able to provide advice specific to your business on how to handle VAT.
At present, we believe the current version of Gravit-e contains all the functionality required to handle the new arrangements required post-Brexit. Should any changes to the core tax calculation functionality be required, these will be made available to all customers as part of your normal support contract.