As of July 1, 2020, a number of countries in the European Union will be able to take advantage of reduced tax rates. The rate adjustment depends on which country you are located in and the industry your business operates under.
Calculating Your Adjusted Rate
If you are using a VAT calculator, such as the VAT Add On for Paid Memberships Pro, it will continue to apply the standard tax rates to your membership. To take advantage of the reduced tax rates, sites using Paid Memberships Pro can use one of the below code recipes to adjust this.
Most VAT calculators identify the EU country by their ISO codes. Below are three recipes that adjust the tax rates based on ISO code. I am including recipes for updating all tax rates, updating a single country’s tax rate, and a final recipe to update the tax rate only after July 1.
The tax rates in these recipes were last updated on
26 June 2020. Rates are likely to continue to be adjusted, so please remember to update your site and tax rates as the information is modified at the following link: https://taxfoundation.org/european-union-value-added-tax-2020/
These recipes all require the VAT Add On for Paid Memberships Pro. This Add On is included in our Plus membership, but we have temporarily made the plugin available to anyone with a free membership. Click here to download the VAT Add On (free membership required).
Method 1: Update All Tax Rates
Method 2: Update a specific country’s tax rate
Method 3: Update a specific country’s tax rate after July 1, 2020
Method 4: Adjusting Tax Rate by Membership Level
Adding the Recipe to Your Website
You can add this recipe to your site by creating a custom plugin or using the Code Snippets plugin available for free in the WordPress repository. Read this companion article for step-by-step directions on either method.
Each recipe can be customized to match the appropriate country and adjusted tax rate that you need based on your location. Remember to follow news on these rates and update your site to reflect ongoing changes.