What happens with VAT

In the product pricing you can set the VAT code against a product.

In the store front and control panel prices are always set and displayed including any VAT. The VAT code is only used to extract VAT from your prices in the transaction reports and thereby give you the information you may need for completing your VAT return.

Tax point

The tax point (or 'time of supply') for an order is the date when the order is picked for VAT purposes. This is the last point at which the order can be modified, with things added or removed. If required, the picked date is available on the order export.

VAT on delivery charges

The percentage of VAT attributed to the delivery charge is proportioned to the percentage of the VAT charged on the sub-total of the order.

COVID-19: Temporary reduced rate for hospitality, holiday accommodation and attractions

See: https://www.gov.uk/guidance/vat-reduced-rate-for-hospitality-holiday-accommodation-and-attractions

FoodCommerce will introduce a temporary vat rate named 'Temporary Reduced Rate' in order to handle this special rate of VAT.

The rate will start at 5%. It will change to 12.5% on the 1 October 2021. On the 1 April 2022 all products and unpicked orders using this rate will revert to the standard VAT rate. The correct VAT rate will be applied at the time of picking the order.

To make use of this special VAT rate simply update any applicable product to this new rate.

See also

Product pricing
Reports and exports