ekmPowershop & VAT

This help page is for Brightpearl accounts in the UK, Australia and other VAT or GST based tax schemes.

Tax rules for US sales tax

VAT on downloaded orders

The tax code(s) and rates applied to the order are defined by the following rules:

Rule 1: Use the customer tax code

This rule is only applicable where the customer already exists in Brightpearl and has been set with a specific code. New customers created as a result of ekmPowershop order downloads will have no code set against them and so rule 2 will be applied

Rule 2: Where the customer has no tax code, use the tax code applicable to the billing address country

This rule is applied by tax zones in Brightpearl. Each country can be assigned to a tax zone, and the tax zone is set to apply a specific tax code.

Sales to the rest of Europe will require the T4 tax code so that a zero VAT rate is applied and the sales figures are displays in the correct boxes on the VAT return.

Ensure no tax code is set against the UK tax zone so that rule 3 is always applied.

Rule 3: If the country has no associated tax code, use the product code

In the UK tax is applied based on the category of product. Setting no tax code against the UK tax zone ensure this rule will be applied for customers purchasing in the UK.

Tax codes can be manually altered as required, prior to invoicing.

Have more questions? Submit a request