V5 content in this video
Please note that this tutorial is based on Mono’s previous interface version, V5. However, most of the principles and functionalities still apply in the latest version of our software.
Learn everything about the improved pricing interface and tax settings.
From Thursday, 08.02.2018
Q1: How does the location of the customer (buyer) affect the tax rate? Isn't only the location of the shop itself relevant?
A: Certain types of goods are taxed in the country where the customer is based. This is for example the case with telecommunications, broadcasting and electronic services in the EU. Therefore, the correct tax rate can only be calculated once the customer has inputted their delivery address. Similarly, in the US, they operate with two types of taxation: origin based and destination based. Many states charge destination based tax, which means that sales tax will be determined by which American state the buyer resides in.
Q2: How do I know when to use a custom tax rate and when not to?
A: You will need to use a custom tax rate in case of VAT exceptions and exemptions. The Mono Editor is constantly kept up-to-date with current default tax rates for physical goods, digital goods, and events in all countries, but does not account for specific products and services that have a different tax rate. As mentioned on the tutorial, books in France are taxed differently from other physical goods which means that the shop owner needs to set up a custom tax rate if selling that particular product type. It is the responsibility of the shop owner to stay updated on VAT exceptions and exemptions in local tax regulation and create and update custom tax rates in the Editor accordingly.