Tags: UK tax European countries tax
United Kingdom and European countries Tax Settings in Xero bridge app
For most stores, there are only two types of tax rates that are collected. One is the normal tax rate for sales based on their jurisdiction. The other one is for exempt or zero rated products where no tax is collected.
- Xero Sales Tax Code
This is the tax code for normal products (non-zero rated). This will be based on the Country/Province/State that the business is registered in.
- Xero Zero Tax Code
This is the tax code name for the products or orders that do not have any taxes applied to them. This field usually is Zero rated field or Exempt field.
- European Countries Taxes
To configure the tax rates for European countries, please use the "Country tax rates for Europe" button. If the taxes are not created already in Xero for European countries then need to create them first in Xero. After that only those will be available to select from the drop down list in our app. If there is a tax applied to an order in Shopify, our app will select the correct tax code based on the settings that you have done in our app. If there is no tax applied to the order in Shopify, then our app will apply the relevant tax code for 0% tax in the invoice in Xero.
If the tax rates for European countries are left empty, the default rate in Xero Sales Tax Code will be applied to the orders in European countries.