How is VAT on shipping rates calculated?

If you have VAT calculation enabled in your online store, this tax will automatically be applied to shipping costs too. 

If you sell physical goods and offer delivery of those goods, the VAT rate applied to the goods will also be applied to the shipping costs. If more than one VAT rate applies to your goods, the same rates will be used for shipping.

For example, if a customer has one product priced at €50 with an applicable VAT rate of 9%, and one product priced at €50 with an applicable VAT rate of 21%, the 9% rate will be applied to half of the shipping cost, and 21% applied to the other half.

In short, we take care of the calculation so you don't have to!