If you are VAT registered in the UK, you may find that your EU customers request a zero-rated VAT invoice from time to time. This can be achieved in OrderHub.
- Click into the relevant order and scroll down to the Product & Payment Information section
- Tick the "EU Zero-Rate VAT" option
- Enter the customer’s VAT number and click Apply
The buyers VAT number will now automatically appear on the invoice, and the VAT portion will be reduced to 0
Frequently Asked Questions
If the invoice has 0% VAT then why is the order total still the same?
Although we can change the VAT to £0 we cannot actually edit the total value of the order. Lets look at an example.
You sell an item for £10 and it normally fetches 20% VAT, so our invoice shows
Subtotal £8, VAT £2, Total £10
You then apply the Zero-Rate for a European buyer and our invoice now shows
Subtotal £10, VAT £0, Total £10
This is correct, as the buyer did actually send you £10 in exchange for this item. However, as there is now no VAT applied you can now refund the buyer the £2 difference. At time of writing, we don't support partial refunding, and this will need to be done directly via the sales channel itself.