VAT in Rackbeat

Learn more about how to manage VAT rates for product groups, VAT zone settings, and country-specific VAT

This article explains how VAT is managed in Rackbeat. We will take a closer look at how VAT rates are determined based on product groups and VAT zones, as well as how you can manage country-specific VAT using the new features.

This article covers the following topics:

• VAT in Rackbeat
• Country-specific VAT
  • Setting up country-specific VAT
  • Setting up country-specific VAT with a new product group
  • Country-specific VAT with e-conomic
  • My customer uses a country I haven’t set up
  • Importing country-specific VAT
  • Integrations with country-specific VAT

VAT in Rackbeat

Two factors determine the applicable VAT rate for sales and purchases:

1. Product Group

The product group that the item is assigned to determines which VAT rate applies for sales or purchases.

For each product group, you can define the VAT rate for the following VAT zones:

• Domestic
• EU
• Non-EU
• VAT-free

2. VAT Zone

All customers and suppliers must have a default VAT zone assigned, which determines the applicable VAT rate for sales or purchases.

Example:

If a product belongs to the “Product with VAT” group and the customer is assigned the “Domestic” VAT zone, a 25% VAT will automatically be applied to sales orders and invoices for the customer.

Country-Specific VAT

Country-specific VAT enables simplified compliance with VAT regulations across borders.

With country-specific VAT, you can specify multiple VAT rates depending on the customer’s country, whether within or outside the EU.

How it works in Rackbeat:

For all customers, a specific VAT zone can be defined based on their country. The VAT rate is determined by the product group and the customer’s VAT zone.

Setting Up Country-Specific VAT

Country-specific VAT is configured in product groups.

Note: Product groups must be created before you can access this functionality.

Steps to set up country-specific VAT:

1. Locate product groups: Navigate to your product groups in Rackbeat.

1. Rediger varegruppe: Rediger din varegruppe og vælg kategorien "Moms".
   

2. Edit product group: Edit the product group and select the “VAT” category.

   
   

3. Update VAT rate: Update the VAT rate for the relevant countries.

   
   
   The VAT rate is updated when you move to the next field or press the enter key.

Setting Up Country-Specific VAT with a New Product Group¨

When creating a new product group and setting up country-specific VAT, you must first create the product group, save it, and then edit it.

To edit the country-specific VAT, go to the “VAT” tab in the product group. Here, you can view and edit the specific VAT rates for all VAT zones.

Country-Specific VAT with e-conomic

If you also work with e-conomic, ensure that the VAT zones in both e-conomic and Rackbeat are updated.

If the VAT zones differ, the VAT rate on your invoice may change when synchronized with e-conomic.

Example of VAT rate changes during invoice transfer:

If the VAT rate in Rackbeat is 10% and the same VAT zone in e-conomic has a VAT rate of 15%, the invoice will be correctly created with 10% VAT in Rackbeat. However, once synchronized with e-conomic, the invoice will display a 15% VAT rate in e-conomic.

Note: To avoid confusion and cleanup tasks, we recommend maintaining consistent VAT rates on both platforms.

My Customer Uses a Country I Haven’t Set Up

If your customer is from a country for which you haven’t defined a specific VAT rate, Rackbeat will automatically apply the VAT rate from the “EU VAT” field.

Example:

Your customer is from Belgium, and you haven’t set up a country-specific VAT rate for Belgium.

In this case, Rackbeat will use the VAT rate from the “EU VAT” field. If “EU VAT” is set to 5%, the customer from Belgium will be charged this rate. This feature ensures that a VAT rate is always applied, even if no specific rate is set for the country.

Importering af landespecifik moms

I denne artikel kan du læse mere om, hvordan der importeres landespecifik moms på kunder: Importering af momszone i Rackbeat

• E-conomic
• Shopify
• WooCommerce
• Webshipper

Margin VAT in Rackbeat

"If you are VAT registered and purchase a used item for resale, you can choose to apply margin VAT instead of standard VAT. With margin VAT, you only pay VAT on the profit margin, not on the full sales price. This ensures that VAT is not charged multiple times on the same item." - Source: Skat.dk “Margin VAT Overview”.