Set up VAT in WooCommerce for foreign countries

Article published 12.08.2020

Are you starting to run an online store on the WooCommerce platform? When pricing, pay close attention to VAT settings, if you sell in foreign markets. Take a look at how to handle this task with the Mergado Pack.

Deal with VAT

The basic tax settings in WooCommerce are intuitive, and with the right procedure, you will avoid problems with displaying incorrect prices.

  1. In the VAT section of WooCommerce, click on the Settings tab and decide whether you enter prices with or without taxes.
  2. The calculation of taxes is subject to several factors - you can calculate VAT depending on the invoicing, delivery address of the customer, or the primary address of the store. This setting is especially important when selling abroad.
  3. The display of prices in the basket, shop, and checkout is set in the same way.
Setting the tax rate in Woocommerce. Source: Mergado WooCommerce test store

Add tax rates for regions

To set different tax rates, go to VAT -> Standard rates. You can find other tax categories in the appropriate settings, where you can also add lines for the state or city rate.

There the following items in one line:

  • Country code - Is two letters, e. g. for the Czech Republic.
  • Country code - Not required for Slovakia or the Czech Republic, but is suitable, for example, for the U.S.A.
  • Postcode and City - Settings similar to the country code. In some countries, the tax may vary by region.
  • Rate - Tax rate in percent, e. g. 21%.
  • Name of the tax - In the Czech Republic classically VAT.
  • Priority - When applying more rules at the same time. Priority determines which tax is displayed first.
  • Compound - Compound tax determines whether a particular tax is calculated based on the price of the product excluding other taxes.
  • Recommendation - determines whether the rate applies to transport.

The "*" symbol entered in the line - such a rate applies to all unspecified areas. When you buy from the Czech Republic, and you have entered a tax rate for CZ, this type of rate applies. If you do not set this rate, the tax is 0%.

Setting the rate in one line for different countries. Source: Mergado WooCommerce test store

How to calculate taxes according to the customer's billing address

If you sell abroad and pay VAT there, setting the tax for a foreign country will make the following example easier:

  1. The first step is to choose the online store address. For example, if you set it for Slovakia, the tax rate of 20% applies here. You enter prices on the store, including tax, so WooCommerce must first calculate the price without the tax, which is based on the tax rate for the country.
  2. Then you enter the price of 1,200 EUR including tax for the product, and WooCommerce calculates the price without the tax 1,200 / 1.20 = 1,000 EUR.
  3. If the customer has a billing address in the Slovak Republic, the price of EUR 1,200 will be displayed in the Cashier. If the customer has a billing address in the Czech Republic, WooCommerce will recalculate the price according to the tax rate of 21%, and the price will be without tax 1,000 * 1.21 = 1,210 EUR.

The Mergado Pack exports product feeds for various tax rates according to the WooCommerce settings. In the Mergado Pack administration, on the Settings page, choose which tax rate you will use in the export.

VAT settings in Mergado Pack.

Mergado Pack can only work with rates according to the country code. It can't work with advanced tax rates by state, postcode or city yet, but you won't even use it in these conditions.

If you set the SK rate - 20%, the price without tax of EUR 1,000, a price with the tax of EUR 1,200, and the tax of 20 (in percent) will be overwritten in the XML feed.


If you use the CZ 21% rate for export, the feed will generate a price without tax of EUR 1,000, a price with the tax of EUR 1,210, and a tax of 21 (in percent).


Make the creation of an online store easier. Using our free Mergado Pack you connect your business to the biggest marketing channels.

Read more:

Mergado Pack for WooCommerce will now help you collect reviews for Biano Star

Many users are skeptical to buy furniture online. When they can't see it for themselves, reviews from other customers often help them choose. Such a function was introduced in 2021 by Biano.

Install Mergado Pack for WooCommerce. You can do it in 2 minutes

Are you a user of the WooCommerce platform? We have a quick guide for you on how to install the free Mergado Pack module in just a few minutes. We've also added a simple way to handle the implementation of Google Analytics. Watch our series of practical videos.

Introducing the new Mergado Pack version. What does it offer to WooCommerce online stores?

The Mergado Pack plugin got enriched with further improvements. The settings and lists of feeds have gained a clearer arrangement. Another new feature is an automatic number of generated product recommendations. Let's take a look at what the third version of the Pack is about.


Add new comment