Correct VAT processing is crucial for every webshop selling in Europe. An error in VAT rates can lead to tax authority assessments. Fortunately, MoneybirdSync ensures automatically correct VAT processing from your Shopify store to Moneybird.
VAT rates in the Netherlands
In the Netherlands, three VAT rates apply:
- 21% standard rate: For most goods and services
- 9% reduced rate: For food, books, medicines and some other categories
- 0% zero rate: For exports outside the EU and certain exempt supplies
How does Shopify process VAT?
Shopify automatically calculates VAT based on the customer's location and your store's tax settings. If you have set up the correct tax rules in Shopify, the right amounts are calculated.
MoneybirdSync reads the VAT information directly from the Shopify order. Per order line, the VAT rate is taken over and correctly processed in the Moneybird invoice.
VAT configuration in MoneybirdSync
In MoneybirdSync you configure the VAT settings for your invoices:
- Default VAT rate: The VAT rate used by default
- Import VAT from Shopify: Use the VAT rate that Shopify has calculated
- Ledger account per VAT rate: Link each VAT rate to the correct ledger account in Moneybird
International sales and VAT
Special VAT rules apply for sales to customers outside the Netherlands:
- Sales within EU (B2C): After the OSS threshold of €10,000 per year, the VAT rate of the customer's country applies. MoneybirdSync processes this correctly via the 0% rule with the correct description.
- Sales outside EU: Export falls under the 0% VAT rate. MoneybirdSync automatically marks these invoices as export.
- Sales to VAT-liable businesses (B2B within EU): With valid VAT numbers, reverse charge applies. MoneybirdSync processes the customer's VAT number on the invoice.
OSS scheme and Shopify
Since 2021, the OSS (One Stop Shop) scheme applies for e-commerce sales to consumers within the EU. If you sell via Shopify to consumers in multiple EU countries, you must calculate the correct local VAT rate per country.
MoneybirdSync can directly import the VAT data from Shopify, so your Moneybird administration is correct for the OSS return.
