FAQ reduced tax rates

If you havent done already, please read our Information on reduced tax rates article as well. 

1. Why doesn't Taxdoo import tax rates from other systems?

Taxdoo does not import tax rates from other systems because most systems do not allow detailed specification of tax rates per country. This is necessary for compliant VAT determination. For instance, children's clothing might have a 0% VAT in the UK but 20% in France. Without country-specific settings, this could lead to compliance issues.

2. How does Taxdoo handle tax rates for products?

Taxdoo assumes all products have the standard tax rate in each country. If reduced tax rates are required, they must be manually set in the Taxdoo Dashboard under “Products” -> “Reduced tax rates”.

3. How can I manually set reduced tax rates in Taxdoo?

You can manually set reduced tax rates by entering the product SKU in the text field in the dashboard or uploading a CSV file of reduced articles under “Products” -> “Reduced tax rates” for each specific country and tax rate.

4. Does updating reduced tax rate articles affect historical data?

No, any edits or updates to tax-reduced articles will only apply starting from the current month. It does not automatically change historical transaction data or completed VAT filings.

5. What should I do if I'm unsure about the applicable reduced tax rates for a product?

Taxdoo offers a recommendation functionality to determine country-specific tax rates based on the customs tariff numbers. However, Taxdoo assumes no liability for the correctness of the proposed tax rates.