Set up VAT and tax settings

Do you need to charge VAT?

VAT rules depend on the country you sell from and the countries you sell to. Check with your accountant or tax authority before you turn tax on.

If your prices are tax-free, leave Charge tax at checkout off. Nothing is added to your orders.

How to turn on tax settings

1. In your Mawg3 dashboard, go to Settings, then Tax & Currency.
2. Turn on Charge tax at checkout.
3. Under QUICK SETUP, pick your country to fill in the VAT rate, or type it in RATE.
4. Check the LABEL. It says VAT by default, and customers see it on the tax line.
5. Enter your TAX ID (OPTIONAL) so it prints on invoices and receipts.
6. Place a test order and check the tax line at checkout and on the invoice.

Quick setup rates

The quick setup buttons fill in these VAT rates: Saudi Arabia 15%, UAE 5%, Bahrain 10% and Oman 5%. You can change the rate afterwards if your situation is different.

Prices with or without tax

Prices include tax is on when you first turn tax on. This is the usual setup for VAT in the Gulf, and your shelf price is the final price.

Turn it off if your prices are before tax. Mawg3 then adds VAT on top at checkout.

Turn on Tax applies to shipping if your delivery fees are taxable too.

Rates by country and product

Open Country-specific rates and click Add country to use a different rate when you ship to that country. Every other country uses your default rate.

Open Product tax classes and click Add class for products that are tax-free or reduced. Tick Free for a zero rate. Then, in the product editor, pick the class under TAX CLASS. Products without a class use the default rate.

Tax with Markets

If you use the Markets addon, each market can set its own rate under Taxes and duties. Anything you don't set there follows your store default.