ProductCart v2.7 and above allow you to show your customers the VAT (Value Added Tax) on the products that they are purchasing (product details page) and on the order total (order details page). In some countries, such as Australia, this is called GST (Goods and Services Tax).

The system behaves based on the following assumptions:

• When you enter prices in ProductCart, they are always entered VAT included. When you add a product to your store, the product's price includes VAT. The system gives you the option to show the price without VAT on the product details page.
• The same VAT is applied to all products sold on the store. You can use a new feature introduced in version 3, called VAT categories, to handle the scenario in which different VAT rates are applied to different categories of products

You can configure the following settings:

• VAT Rate (e.g. 20%)
• Whether VAT should be shown on the product details page. If set to “Yes”, ProductCart calculates the price without VAT and displays it below the online price. Here is an example of how the price would be shown for a hypothetical product:

Price: £26.00 (Price inc. VAT)
(Price without VAT: £21.76)
List Price: £29.96 - You Save: £3.96

Other options:

• Whether to include shipping charges in the calculation. If set to “Yes”, ProductCart assumes that shipping charges include VAT. So when it calculates the total VAT applied to the order, it includes these charges in the equation.
• Whether to include handling fees. If set to “Yes”, ProductCart assumes that handling fees include VAT. So when it calculates the total VAT applied to the order, it includes these fees in the equation.
• Whether wholesale customers should be taxed. You can choose whether or not VAT should be shown when wholesale customers are checking out.

The following screen shot displays the VAT settings described above.

ProductCart allows you to assign Products to different VAT Rate Categories based on the Product type. You can create as many categories as you need.

For instance, you could assign all “books” to a Reduced Rate category, and all “umbrellas” to a Standard Rate category.

Check the laws in your region if you're not sure which category a particular product belongs to. If all of your products fall into the same category, there is not need to use VAT Categories. Products that are not assigned to a VAT Category will automatically use the Default rate.