Both the UK and the EU use value-added tax system (VAT). Each European country and the UK has a different VAT rate that can be charged by a merchant only if the business is registered for VAT. A registered business must provide a VAT invoice in case there is no VAT exemption for the goods.

VAT rates and VAT exemptions in X-Cart can be set-up manually using the Value Added Tax/Goods Service Tax addon. The addon allows configuring different tax rates based on the membership level and address of the customer. It also supports tax exemption based on customer’s VAT ID.

To automate tax calculation and setup European and EU based businesses can use the AvaTax Sales Tax Automation addon.

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