You will have to pay taxes if you run an online store. Unfortunately, it’s just a necessary part of running a business.
Thankfully, some great WooCommerce tax plugins help make the whole process easier. After all, why calculate all your taxes manually if you can get a plugin to do it automatically?
Okay, let’s dive in!
3 Best WooCommerce Tax Plugins
There are multiple WooCommerce tax plugins to choose from, but you don’t want to try them all out to find out which is best for you. So, I have narrowed them down to just a few plugins that I think are worth trying.
EU VAT Manager for WooCommerce by WPFactory
🏆 Best for selling products in the UK and EU.
EU VAT Manager for WooCommerce is a simple but effective plugin that will enable you to manage VAT on all your sales in the UK and EU. You can collect the VAT number at checkout and validate it against the official VAT database. You can then automatically exempt VAT for any valid VAT numbers.
Although the main features are free, several features are only available in the Premium version. For example, the ability to check a user’s country by the IP address, validate the company name, and show the tax field only for selected countries and user roles.
Pricing: The basic version remains free, there has been a revision in the pricing of the premium version. It now starts at $50 per year – single site.
Key features:
- Collect the VAT number upon checkout and validate it against the official EU/UK database.
- Add all EU country VAT standard rates to your store with a single click.
- Automatically exempt VAT for any valid VAT numbers.
- Preserve VAT in specific countries.
- Check the user’s country by IP address.
- Show the tax field for selected countries and user roles only.
- Validate company name.
EU VAT Manager for WooCommerce has an average rating of 4.9 out of 5 stars from 17 reviews on WordPress.org.
Pros:
- Easy to set up and use.
- Works reliably.
- Excellent support.
Cons:
- Not all features are available in the free version.
EU/UK VAT Compliance Assistant for WooCommerce
🏆 Best for selling products in the UK and EU.
Similar to the EU/UK VAT Manager for WooCommerce mentioned above, this is another helpful plugin if you sell UK and EU products. The many features listed below are available in the free version, but the Premium version has even more features. For example, the ability to exempt VAT-registered buyers and the option to allow B2B sales only.
Pricing: Free, with the Premium version available for $73.97 per year.
Key features:
- Records evidence of customer locations using billing/shipping address and IP address (GeoIP lookup).
- Evidence is recorded and ready for audit: WooCommerce order screen in the backend displays full info used to calculate VAT and customer location.
- Show correct VAT prices on the first page: GeoIP information is used to show the correct VAT. Widget and shortcode enable customers to set country.
- Automatically converts between currencies.
- Single-click button to add/update EU/UK VAT rates in WooCommerce tax settings for all countries.
- Advanced reporting features provide OSS/MOSS/IOSS VAT reports. Reports sortable by country, VAT rate, VAT type, and order status; export as CSV.
- Forbid checkout of VAT-chargeable goods for store owners unable to comply with VAT regulations. Allow purchase of other goods not subject to VAT, unlike the default WooCommerce feature, which forbids checkout from some countries completely.
- Central control consolidates settings, reports, and other information into one place, eliminating the need to navigate multiple pages in the WordPress dashboard.
- Sell goods subject to customer-place-of-supply regulations and other physical goods subject to country-based VAT regulations.
EU/UK VAT Compliance Assistant for WooCommerce has an average rating of 4.8 out of 5 stars from 23 reviews on WordPress.org.
Pros:
- Easy to use.
- It makes entering tax rates and reporting taxes easy.
- Excellent support.
Cons:
- Not all features are available in the free version.
WooCommerce Quaderno – Tax Automation Plugin
🏆 Best for automatically managing all sales tax all over the world.
The WooCommerce Quaderno Tax Automation Plugin is free to download and install, but to use it, you need a Quaderno account, which is not cheap. It will cost you $49 per month for 250 transactions per month. Once you start selling more than that, the price increases.
But sometimes you get what you pay for, and this seems to do a great job handling all sales tax worldwide. It’s easy to set up and then automatically deal with all sales tax. But if you ever do get stuck, the support is excellent.
Pricing: starting from $49 per month for 250 transactions.
Key features:
- Notifies you whenever you are liable for taxes.
- Automatically calculates the tax on all your transactions.
- Provides all the information required for tax returns.
- Receipts and credit notes are automatically sent for all orders — in multiple currencies and languages.
- Your customers can download receipts and credit notes directly.
- Manage all your business revenue from a single dashboard.
The WooCommerce Quaderno Tax Automation Plugin has an average rating of 4.7 out of 5 stars from 16 reviews on WordPress.org.
Pros:
- Easy to use.
- Automatically handles all sales tax all over the world.
- Excellent support.
Cons:
- No free version is available.
Customizing Tax Rates with JetFormBuilder
If you are using Crocoblock’s JetFormBuilder, you can use it to calculate tax rates. This is possible because the Calculated field JetForms supports ternary operators, which allow for building complex conditional formulas. This enables you to calculate the payable tax based on different income levels and the threshold tax rate.
Please see our step-by-step guide if you already have JetFormBuilder or want to know how to do this. However, if you have never used JetFormBuilder before, check out this video which provides an overview of what it can do:
FAQ
First, you need to go into the General settings in the WooCommerce plugin, select the Enable Taxes and Tax Calculations checkbox and save changes. Afterward, go to the Tax tab, where you can set your tax settings.
WooCommerce charges 2.9% + $0.30 for each transaction made with U.S.-issued credit or debit cards. For cards issued outside the U.S., there’s an additional 1% fee.
Theoretically, yes. WooCommerce does not limit the number of products you can add to your online store. That said, adding a million products to your store will likely slow it down.
No. VAT is paid by manufacturers, wholesalers, and retailers. Consumers pay sales tax. Retail sales include both taxes, while business-to-business transactions don’t have sales tax.
Summary
WooCommerce tax plugins make managing taxes on your online store much quicker and easier. Here, I have looked at several excellent tax plugins:
- EU VAT Manager for WooCommerce — best for selling products in the UK and EU.
- EU/UK VAT Compliance Assistant for WooCommerce — also great for selling products in the UK and EU.
- WooCommerce Quaderno – Tax Automation Plugin — best for automatically managing all sales tax worldwide.
I also looked at how you can customize tax rates with JetFormBuilder, which is ideal if you already use that plugin.
Whichever plugin you choose, I wish you the very best with managing the tax with your online store.
