Do I need to charge VAT (moms) on my Product Listings?

Charge VAT on a Product — How it works

✅ Purpose

This toggle helps sellers indicate whether a product is subject to taxation (such as VAT, Sales Tax, etc.). It ensures that tax regulations are met automatically, based on where the customer is located when they check out.

🔘 Toggle Options:

YES (Taxable): You will charge tax on the product.
NO (Non-taxable): No tax is added at checkout.

If you’re unsure whether your item should include VAT, check with a local tax authority or accountant.

💰 How to Set the Listing Price When Tax is Charged

If you toggle NO:

The amount you set in Listing Price is the final amount that will show for everyone.

If you toggle YES:

You must input the Listing Price excluding tax.
Ribbn will automatically add the correct VAT or sales tax based on the customer's country.

📌 Example (Sweden with 25% VAT):

Your desired final price: 100 SEK
Required Listing Price: 80 SEK
Why? Because 80 + 25% VAT = 100 SEK → 80 x 1.25 = 100

This ensures your item shows up as 100 SEK only when tax applies.

🌍 Customer Location = Tax Behavior

Tax calculation is location-dependent and dynamic:

US-based customer (no VAT): Customer sees and pays 80 SEK (equivalent to ~8 USD)
Sweden-based customer (25% VAT): Customer sees and pays 100 SEK

Ribbn handles this logic automatically, including:

Applying/removing VAT or other tax types
Calculating tax percentages
Displaying the correct price

You only need to decide whether the product is taxable or not.

🧠 Smart Behind-the-Scenes Handling

The system:

Detects customer location
Applies local tax rules
Shows final price with or without tax
Requires no manual intervention from the seller after setting tax toggle

✅ To summarize:

Set YES if the product is taxable (e.g., in the EU).
Enter the base price before VAT.
Ribbn will automatically:
- Add appropriate VAT based on the customer’s location
- Adjust the displayed price at checkout
No need to manually manage tax rates per country.