Information on reduced tax rates

Taxdoo does not import tax rate settings from other systems. One of the reasons for that is that most systems do not allow a detailed specification of tax rates per country, as it is required for a compliant determination of the VAT. 

For example, children's clothing has a VAT tax rate of 0% in GB, but a standard VAT tax rate of 20% in France. In most systems, you could only set a “global” reduced tax rate setting for all countries, which in this example case could lead to compliance problems. 

We therefore always assume that products have the standard tax rate in every country. If you would like reduced tax rates to be considered, these have to be set manually in our Dashboard in the “Products” -> “Reduced tax rates” section. For each country and tax rate combination, you can either enter the respective product SKU in a text field in the dashboard or upload reduced articles via CSV file. Please also see our video tutorial here (only available in German). 

Please note that editing/updating tax-reduced articles will only be applied starting from the current month. After the tax rate has been set, the reduced rates will be applied for every report creation - that also means in case of retrospective re creations, we will apply the new tax rates. But it does not automatically change your historical transaction data or completed vat filings. 

If it's not known whether reduced tax rates can be applied to a product, we offer you a recommendation functionality for determining the country-specific tax rates based on the customs tariff numbers. Please note that Taxdoo assumes no liability for the correctness of the proposed tax rates.