How VAT is managed in systeme.io
In this article, you will learn how VAT works and how to configure it within systeme.io.
Managing VAT can be complex because rates vary by country and product type.
Fortunately, systeme.io simplifies this process for you.
Information products and services
For information products and services, the rule is simple: the VAT rate of the buyer's country of residence is applied.
This is the default behavior of the order form in systeme.io:
You set a price excluding VAT in the order form settings, and during the purchase, systeme.io will automatically add the VAT rate of the buyer's country.
Important note: If you don't select the Country field on your order form, the VAT rate applied will be 0%, since we can't determine the rate to be applied.
Example: You are in France (VAT of 20%), and you sell a training course to a resident of Belgium (VAT rate of 21%) => A VAT rate of 21% must be applied to the sale.
Physical products
For physical products, the rule is simple: the VAT rate of the seller's country applies.
To manage this, systeme.io allows you to create physical products (in the menu, go to the
Assets tab > Physical products).
For each physical product, you can define the VAT rate of your choice.
(We recommend setting the VAT rate of your country of residence).
If you want to set the rate of your choice
If you want to set the VAT rate of your choice (for example, to apply the reduced VAT rate for digital books in France), you must create a product in the interface (like a physical product) and sell it with systeme.io
French Overseas Departments and Territories (DOM-TOM)
These territories have local VAT rate that applies locally, but if you are not resident in one of these territories, the VAT rate to be applied when you sell to a resident of these territories is 0%.
