How to set the VAT rate for each country
The Easy Digital Downloads EU VAT plugin comes pre-programmed with the current standard VAT rate for each EU country. You can change these as required in the Easy Digital Downloads settings - for example, if you need to charge a reduced rate instead of the standard rate.
How to edit tax rates
- Go to Downloads → Settings → Taxes.
- Edit the settings for each country as required
When you edit the tax rate for a country, this will override the rate that is built into the plugin. Any country where you have not entered a specific tax rate will continue to use the standard rate that is built into the Easy Digital Downloads EU VAT plugin.
How to set the tax rates for non-EU countries
Because the UK was recently part of the EU, we have built the UK VAT rate into our plugin. This means that the plugin will automatically charge your UK customers the correct rate of VAT, and you don't need to add this manually. (See our separate article about reverse charging VAT in the UK.)
If you need to charge tax for any other non-EU country then you should use the Taxes page in the Easy Digital Downloads settings to set the correct tax rate for your country.
What happens when a country changes its VAT rate?
If an EU country or the UK changes its standard tax rate then we will build this into the Easy Digital Downloads EU VAT plugin and release an update. You can update the plugin from your WordPress Dashboard for as long as you have a valid and active license key. As soon as you update the plugin, your EDD store will start using the new tax rates.
If you have set tax rates manually on the 'Taxes' page in the Easy Digital Downloads settings then these will NOT be updated automatically by the Easy Digital Downloads EU VAT plugin. Instead, you must go to Downloads → Settings → Taxes and update the tax rate. For this reason, if you are setting tax rates manually then we recommend signing up for an alerts to notify you when tax rates change (if these are available for your country), or setting yourself a reminder to check the current tax rate regularly.