VAT Settings

Marketplaces will always expect your prices to be including VAT. Therefore, orders coming from marketplaces will also have order / orderline totals including VAT (regardless if this concerns regular VAT, reduced VAT, super-reduced VAT or VAT exempt). Most marketplaces, however, will do nothing on their end regarding the exact VAT calculation (with the exception of Amazons optional VAT Calculation Services) and leave the exact VAT calculation to the seller.

ChannelEngine offers the option to calculate the VAT on orders, however, this requires you to supply your VAT numbers to your ChannelEngine account where applicable. European legislation requires you to have a VAT registration in a country if your gross sales to that country exceed a threshold. Please note these thresholds apply to sales to individuals (B2C), not other companies (B2B). If you do not reach this threshold, you can just apply the VAT for the country you deliver from (and will most likely be the country your organization is based in).

// VAT settings in ChannelEngine

  1. To set up your VAT number(s) in ChannelEngine, select 'Settings' > 'VAT rate settings'.
  2. Now select the 'Edit' pencil on the right-hand side for every country you wish to add a VAT number for.
  3. Now enter your VAT number (and select Enable VAT rule) and press 'Save'.
    Important: We check for International VAT numbers (in the VIES) database. However, some countries (Germany & Spain for example) also have 'local' VAT numbers. Unfortunately, these can not be verified and will result in an error when trying to save in ChannelEngine.
  4. If the VAT number is correct (it will be checked at the VIES registry) you'll see a success message, a green checkmark, and the VAT information will be visible.
  5. In the overview, you'll see the VAT number in the column for that and there will be a green checkmark visible in the first column.
  6. Repeat this step for any additional countries you possess a VAT number for and want to have the VAT calculated for.
  7. Please note: the VAT calculation will only apply on new orders, not on existing orders (we'll never manipulate orders that are already in ChannelEngine).

It's not in any way mandatory to use ChannelEngine's VAT calculation. As we have only insight into the total sales via connected marketplaces, we can't determine with certainty a threshold has been reached or not. If you want to use your own VAT calculations, you can always use the ' Original' fields from ChannelEngine, containing the exact order values as has been received by the marketplace (so without any VAT calculation or currency conversion). Below is an example as would be returned via our merchant API.

"SubTotalInclVat": 49.99,
      "SubTotalVat": 8.68,
      "ShippingCostsVat": 0,
      "TotalInclVat": 49.99,
      "TotalVat": 8.68,
      "OriginalSubTotalInclVat": 49.99,
      "OriginalSubTotalVat": 8.68,
      "OriginalShippingCostsInclVat": 0,
      "OriginalShippingCostsVat": 0,
      "OriginalTotalInclVat": 49.99,
      "OriginalTotalVat": 8.68,
      "Lines": [
        {
          "Status": "IN_PROGRESS",
          "IsFulfillmentByMarketplace": false,
          "MerchantProductNo": "269-703-60",
          "Gtin": "4251234428221",
          "UnitVat": 8.68,
          "LineTotalInclVat": 49.99,
          "LineVat": 8.68,
          "OriginalUnitPriceInclVat": 49.99,
          "OriginalUnitVat": 8.68,
          "OriginalLineTotalInclVat": 49.99,
          "OriginalLineVat": 8.68,
          "BundleProductMerchantProductNo": null,
          "ChannelProductNo": "2300786794",
          "Quantity": 1,
          "CancellationRequestedQuantity": 0,
          "UnitPriceInclVat": 49.99,
          "FeeFixed": 7.5,
          "FeeRate": 0,
          "Condition": "NEW"
        }