WP Ultimo has a tax collection module built into our core plugin, so if you need to collect sales taxes on your plans, packages and services, you can easily do so without resorting to installing any add-ons.
For companies located in Europe, we offer an add-on that adds tools and features to better support VAT compliance.
WP Ultimo does not file or remit taxes on your behalf to the government; we simply help you collect the appropriate taxes at the time of the transaction. You’ll still need to remit taxes on your own.
Enabling Tax Collection
Tax collection is not enabled by default. To enable it, you need to go to WP Ultimo > Settings > Taxes and toggle to enable the Enable Taxes setting.
Tax excluded vs. Tax included
By default, all your product prices are tax excluded, meaning that taxes are not included in the product's price. If we determine that a customer should pay taxes on a given purchase, we'll add the taxes on top of the subtotal.
If you prefer to have taxes included in your product's price, you can do so by enabling the Inclusive Tax setting.
Don't forget to save the changes you've made.
Creating Tax Rates
After you enable Tax Collection, you'll need to create tax rates for specific locations using our tax rates editor.
You can access the editor by clicking the Manage Tax Rates button on the sidebar of the Tax settings page.
On the tax rates editor page, you can add new Tax Rates by clicking the Add new Row button.
You'll need to give each tax rate a title (used on invoices). Then you can choose the country (required), the state, and the city (both optional) where this tax will be charged. Finally, add the tax rate in percents.
Tax Categories
You can also create multiple Tax Categories, to add different tax rates for different kinds of products.
Click to Add new Tax Category, then write your category's name and press Create.
To browse through categories, click Switch and select the category to which you want to add new taxes.
You can set the tax category for a particular product by going to the Product edit page and then to the Taxes tab.
On that same screen, you can toggle off the Is Taxable? toggle to let WP Ultimo know that it should not collect taxes on that given product.
European VAT Support
As mentioned before, we have an add-on available for customer in the EU that have additional requirements due to European VAT regulations.
Our VAT tools help with a couple of important things:
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Easy loading of EU VAT rates;
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VAT Number collection and validation - and reverse charging for VAT exempt entities (such as companies with valid VAT numbers);
To install that add-on, go to WP Ultimo > Settings and then click on the Check our Add-ons sidebar link.
You'll be redirected to our add-ons page. There, you can search for the WP Ultimo VAT add-on and install it.
Then, head to Network Admin > Plugins and activate that add-on network-wide.
If you head back to the Tax Settings tab, you'll see new options available. Toggle the Enable VAT Support option to enable the new VAT tools. Don't forget to save your settings!
Pulling on VAT Tax Rates
One of the tools that our integration adds is the ability to load the tax rates for EU member states. That can be done by visiting the tax rates editor page after enabling EU VAT support.
At the bottom of the page, you'll see the VAT pulling options. Selecting a rate type and clicking the Update EU VAT Rates button will pull up and auto-populate the table with the tax rates for each EU member state. Then, you only need to save it.
You can also edit the values after pulling them. To do it, simply edit the table line you need and click to save the new values.
VAT Validation
When VAT support is enabled, WP Ultimo will add an additional field to the checkout form, bellow the billing address field. The field will only show up for customers located in the EU.
WP Ultimo will then validate the VAT Number and if it comes back as a valid one, the reverse charge mechanism is applied and the tax rate is set to 0% on that order.