Title: Tax code issue
Last modified: July 3, 2024

---

# Tax code issue

 *  Resolved [contextquestion](https://wordpress.org/support/users/contextquestion/)
 * (@contextquestion)
 * [1 year, 10 months ago](https://wordpress.org/support/topic/tax-code-issue/)
 * Good morning everyone! I hope you can help out with an issue I’ve been experiencing.
 * Since the big WooCommerce update (9.0) we’ve discovered a strange issue with 
   VAT in B2B situations within Europe.
 * For context, we’re a company located in the Netherlands. B2B invoices within 
   Europe* now show “(inc. 0.00% VAT) Supply of services subject to reverse charge”.[*
   except B2B purchases from within our own country] In theory, this is very convenient
   as we had to manually add ‘VAT Reverse Charge’ before, however, we only sell 
   goods and it states ‘services’. In our bookkeeping extension we also discovered
   that WooCommerce marks the shipping costs as services instead of goods, but only
   for B2B interactions within Europe. For outside of Europe, within our own country
   or B2C purchases within Europe, it gives the correct tax code. I suspect these
   two situations are connected to each other. The support from our bookkeeping 
   extension told us we should contact WooCommerce for this issue, as those tax 
   codes were automatically given by WooCommerce’s API. For the life of me, I cannot
   find where the settings are for that Reverse Charge sentence on the invoices,
   nor where I can set the tax codes for shipping. All our products are ‘simple 
   products’.
 * TLDR: where can I change the “services” to “goods” in “(inc. 0.00% VAT) Supply
   of services subject to reverse charge” on invoices and how do I change the tax
   code for shipping?
 * System Status Report
 *     ```wp-block-code
       ### WordPress Environment ###WordPress address (URL): [Redacted]Site address (URL): [Redacted]WC Version: 9.0.2Legacy REST API Package Version: ✔ 1.0.4Action Scheduler Version: ✔ 3.7.4Log Directory Writable: ✔WP Version: 6.5.5WP Multisite: –WP Memory Limit: 1 GBWP Debug Mode: –WP Cron: ✔Language: en_GBExternal object cache: ✔### Server Environment ###Server Info: ApachePHP Version: 7.4.33PHP Post Max Size: 100 MBPHP Time Limit: 600PHP Max Input Vars: 100000cURL Version: 7.87.0OpenSSL/1.1.1wSUHOSIN Installed: –MySQL Version: 8.0.35Max Upload Size: 100 MBDefault Timezone is UTC: ✔fsockopen/cURL: ✔SoapClient: ✔DOMDocument: ✔GZip: ✔Multibyte String: ✔Remote Post: ✔Remote Get: ✔### Database ###[REDACTED]### Post Type Counts ###attachment: 439aw_workflow: 4cookielawinfo: 27ct_content_block: 7customize_changeset: 440custom_css: 2elementor_font: 1elementor_library: 16elementor_snippet: 1forminator_quizzes: 2is_search_form: 5jetpack_migration: 2jp_pay_product: 2language_switcher: 4mailpoet_page: 1nav_menu_item: 54oembed_cache: 1page: 56post: 3prl_engine: 2product: 232revision: 67seedprod: 2shopmagic_automation: 4shop_order: 32shop_order_refund: 12wp_global_styles: 3wp_navigation: 1wp_template: 2### Security ###Secure connection (HTTPS): ✔Hide errors from visitors: ✔### Active Plugins (27) ###Blocksy Companion (Premium): by CreativeThemes – 2.0.56Ivory Search: by Ivory Search – 5.5.6AutomateWoo: by WooCommerce – 6.0.11EAN for WooCommerce: by WPFactory – 4.9.7Elementor Pro: by Elementor.com – 3.22.1Elementor: by Elementor.com – 3.22.3Fish and Ships Pro: by wpcentrics – 1.5.6FlyingPress: by FlyingWeb – 4.14.4Forminator: by WPMU DEV – 1.32Redis Object Cache: by Till Krüss – 2.5.2Sendcloud | Smart Shipping Service: by Sendcloud B.V. – 2.4.4TranslatePress - Multilingual: by CozmoslabsRazvan MocanuMadalin UngureanuCristophor Hurduban – 2.8.0GDPR Cookie Consent: by WebToffee – 2.6.0Product Filter by WBW: by WBW – 2.6.4WooCommerce Back In Stock Notifications: by WooCommerce – 1.6.6WooCommerce EU VAT Number: by WooCommerce – 2.8.9WooCommerce Legacy REST API: by WooCommerce – 1.0.4PDF Invoices & Packing Slips for WooCommerce: by WP Overnight – 3.8.4PDF Invoices & Packing Slips for WooCommerce - Professional: by WP Overnight – 2.15.10PDF Invoices & Packing Slips for WooCommerce - Premium Templates: by WP Overnight – 2.21.8WooCommerce: by Automattic – 9.0.2Asset CleanUp: Page Speed Booster: by Gabe Livan – 1.3.9.3WP HTML Mail - Email Template Designer: by Hannes Etzelstorfer // codemiq – 3.4.7Smart Image Resize PRO: by Nabil Lemsieh – 1.8.4WPSSO Core: by JS Morisset – 17.17.1WPSSO Product Metadata for WooCommerce SEO: by JS Morisset – 4.2.0Sequential Order Numbers for WooCommerce: by WebToffee – 1.6.3### Inactive Plugins (6) ###Force Regenerate Thumbnails: by Exactly WWW – 2.1.4Payment Plugins for PayPal WooCommerce: by Payment Pluginssupport@paymentplugins.com – 1.0.48Payment Plugins for Stripe WooCommerce: by Payment Pluginssupport@paymentplugins.com – 3.3.73Query Monitor: by John Blackbourn – 3.16.3Regenerate Thumbnails: by Alex Mills (Viper007Bond) – 3.1.6WooCommerce Product Recommendations: by WooCommerce – 3.0.4### Dropin Plugins () ###advanced-cache.php: advanced-cache.phpobject-cache.php: Redis Object Cache Drop-In### Must Use Plugins (3) ###CDN Cache Plugin: by  – 1.1.3Elementor Safe Mode: by Elementor.com – 1.0.0WP.com Site Helper: by  –### Settings ###API Enabled: ✔Force SSL: –Currency: EUR (€)Currency Position: left_spaceThousand Separator: .Decimal Separator: ,Number of Decimals: 2Taxonomies: Product Types: bundle (bundle)external (external)grouped (grouped)simple (simple)variable (variable)Taxonomies: Product Visibility: exclude-from-catalog (exclude-from-catalog)exclude-from-search (exclude-from-search)featured (featured)outofstock (outofstock)rated-1 (rated-1)rated-2 (rated-2)rated-3 (rated-3)rated-4 (rated-4)rated-5 (rated-5)Connected to WooCommerce.com: ✔Enforce Approved Product Download Directories: ✔HPOS feature enabled: ✔Order datastore: Automattic\WooCommerce\Internal\DataStores\Orders\OrdersTableDataStoreHPOS data sync enabled: ✔### Logging ###Enabled: ✔Handler: Automattic\WooCommerce\Internal\Admin\Logging\LogHandlerFileV2Retention period: 15 daysLevel threshold: –Log directory size: 384 KB### WC Pages ###Shop base: #4649 - /storefront-new/Cart: #14 - /cart/Checkout: #15 - /checkout/My account: #16 - /my-account/Terms and conditions: #1271 - /terms-and-conditions/### Theme ###Name: Blocksy ChildVersion: (update to version 0 is available)Author URL: Child Theme: ✔Parent Theme Name: BlocksyParent Theme Version: 2.0.56Parent Theme Author URL: https://creativethemes.comWooCommerce Support: ✔### Templates ###Overrides: blocksy/woocommerce/cart/cart.phpblocksy/woocommerce/cart/mini-cart.phpblocksy/woocommerce/content-widget-product.phpblocksy/woocommerce/content-widget-reviews.phpblocksy/woocommerce/myaccount/my-account.phpblocksy/woocommerce/product-searchform.phpblocksy/woocommerce/single-product/tabs/tabs.php### Back In Stock ###Database Version: 1.6.6Loopback Test: ✔### Admin ###Enabled Features: activity-panelsanalyticsproduct-block-editorcouponscore-profilercustomize-storecustomer-effort-score-tracksimport-products-taskexperimental-fashion-sample-productsshipping-smart-defaultsshipping-setting-tourhomescreenmarketingmobile-app-bannernavigationonboardingonboarding-tasksproduct-custom-fieldsremote-inbox-notificationsremote-free-extensionspayment-gateway-suggestionsshipping-label-bannersubscriptionsstore-alertstransient-noticeswoo-mobile-welcomewc-pay-promotionwc-pay-welcome-pageDisabled Features: minified-jsnew-product-management-experiencepattern-toolkit-full-composabilityproduct-pre-publish-modalsettingsasync-product-editor-category-fieldlaunch-your-storeproduct-editor-template-systemDaily Cron: ✔ Next scheduled: 2024-07-03 09:51:23 +02:00Options: ✔Notes: 95Onboarding: completed### Action Scheduler ###Canceled: 31Oldest: 2024-07-03 11:22:56 +0200Newest: 2024-07-03 11:22:56 +0200Complete: 23,585Oldest: 2024-06-02 11:35:14 +0200Newest: 2024-07-03 11:22:08 +0200Failed: 13Oldest: 2024-06-19 10:32:27 +0200Newest: 2024-07-02 14:04:38 +0200Pending: 22Oldest: 2024-07-03 11:23:02 +0200Newest: 2024-07-08 14:04:45 +0200### Status report information ###Generated at: 2024-07-03 11:22:56 +02:00
       ```
   

Viewing 8 replies - 1 through 8 (of 8 total)

 *  [Zee](https://wordpress.org/support/users/doublezed2/)
 * (@doublezed2)
 * [1 year, 10 months ago](https://wordpress.org/support/topic/tax-code-issue/#post-17867911)
 * Hello [contextquestion](https://wordpress.org/support/users/contextquestion/)
 * Thank you for contacting Woo support.
 * To better understand the problem you are facing, I need a little bit more information.
 * > We’re a company located in the Netherlands. B2B invoices within Europe* now
   > show “(inc. 0.00% VAT) Supply of services subject to reverse charge”. [* except
   > B2B purchases from within our own country]
 * Could you edit a few orders and share screenshots of the order details with me?
   
   You may hide the sensitive information.
 * Next, navigate to **WooCommerec → Settings** and click the **Tax **tab at the
   top.
   Then share screenshots of the **Tax settings** and also of the **Tax rates**
   you have set up.
 * May I ask which bookkeeping extension you are using?
   It would help me understand
   the overall situation.
 * I would be be happy to assis you further once I have more information. 🙂
 * Best regards.
 *  Thread Starter [contextquestion](https://wordpress.org/support/users/contextquestion/)
 * (@contextquestion)
 * [1 year, 10 months ago](https://wordpress.org/support/topic/tax-code-issue/#post-17870500)
 * Dear Zubair,
 * Thank you for your answer.
 * I have created some screenshots for you. If you need more, or specific information,
   please tell me so.
 * We use E-boekhouden, which uses the REST API of WooCommerce.
 * Kind regards.
 * **NL to BE B2B order:**
   [Backend view](https://drive.google.com/file/d/18YSZPxQQzrvLRs4VKPjkxiizYEM9qx2V/view)
   [Invoice](https://drive.google.com/file/d/1BB5qCD56Kf33pYr4NBsYhaOJylBZvuxD/view?usp=drive_link)**
   NL to DE B2B order:**[Backend view](https://drive.google.com/file/d/1F7qT4ZcZA3mVUuKRkiF5hLIrHOOcXgeQ/view?usp=drive_link)
   [Invoice](https://drive.google.com/file/d/1zEpqhEqmpMfrPANby0ULN4BIQtVLj8O4/view?usp=drive_link)**
   Tax settings:**[Tax options 1](https://drive.google.com/file/d/1CsmGi3PSubWiH_TDYW2Zw2waqRnam7Ci/view?usp=drive_link)
   [Tax options 2](https://drive.google.com/file/d/1__YQwbHHrpNdNRCuX6BYQSNK-Oef93hO/view?usp=drive_link)
   [Tax rates 1](https://drive.google.com/file/d/1vO395WJ1WawDhV7kCY4h1rG6LxNe0O3Z/view?usp=drive_link)
   [Tax rates 2](https://drive.google.com/file/d/1YJDMqgtlNWUyMFztVW__HsCA-FB1nkxc/view?usp=drive_link)
   [REST API view](https://drive.google.com/file/d/1cVweugLvKqBpfKVPUM6XcP-jGltxTxZn/view)
 *  [anastas10s](https://wordpress.org/support/users/anastas10s/)
 * (@anastas10s)
 * [1 year, 10 months ago](https://wordpress.org/support/topic/tax-code-issue/#post-17870839)
 * Thank you for reaching back, with further details on this [@contextquestion](https://wordpress.org/support/users/contextquestion/).
 * Based on [this screenshot](https://drive.google.com/file/d/1BB5qCD56Kf33pYr4NBsYhaOJylBZvuxD/view),
   the phrase appears on invoices – not part of the core WooCommerce that is supported
   here.
 * From the site’s [System Status Report (SSR), shared above](https://wordpress.org/support/topic/tax-code-issue/),
   it appears the following plugins are active and have to do with invoicing at 
   the store:
    - PDF Invoices & Packing Slips for WooCommerce: by WP Overnight – 3.8.4
    - PDF Invoices & Packing Slips for WooCommerce – Professional: by WP Overnight–
      2.15.10P
    - DF Invoices & Packing Slips for WooCommerce – Premium Templates: by WP Overnight–
      2.21.8
 * Feel free to reach out to its support channel, as they would be in a better position
   to assist you.
 * I trust that points you in the right direction, but if you have more questions,
   let us know.
 * We’re happy to help.
 *  Thread Starter [contextquestion](https://wordpress.org/support/users/contextquestion/)
 * (@contextquestion)
 * [1 year, 10 months ago](https://wordpress.org/support/topic/tax-code-issue/#post-17870890)
 * Dear anastas,
 * Thank you for your answer.
 * I disabled those plugins, and the sentence still shows. The ‘pro’ WooCommerce
   plugins have not updated in a few months, which leads me to believe that these
   do not impact the newly appeared sentence about reverse charging vat. I don’t
   know what causes it to show, only that it started very recently since the big
   WooCommerce update.
 * However, even if that phrase itself would not be part of the WooCommerce core,
   I am still stuck with WooCommerce labelling shipping in the incorrect tax code,
   as a service. I need to know where that comes from, what determines the tax code?
   I can’t see where I can select the tax code belonging to shipping.
 * Kind regards.
 * An order with the invoice plugins disabled (NL to BE, B2B):
   [Backend view](https://drive.google.com/file/d/1thmnMCRs98LwC5wHhfsYHf6b5EWcXN3d/view?usp=drive_link)
   [Invoice mail](https://drive.google.com/file/d/12Wm9LCsHdGDGepeLTLeF_PzP_cSkvhUw/view?usp=drive_link)
 *  [anastas10s](https://wordpress.org/support/users/anastas10s/)
 * (@anastas10s)
 * [1 year, 10 months ago](https://wordpress.org/support/topic/tax-code-issue/#post-17871246)
 * Thank you for reaching back, clarifying things further [@contextquestion](https://wordpress.org/support/users/contextquestion/).
 * I went ahead with browsing the [WooCommerce changelog](https://raw.githubusercontent.com/woocommerce/woocommerce/trunk/changelog.txt)(
   this was [the closest](https://github.com/woocommerce/woocommerce/pull/45395),
   but not exact match), placed test orders on a test site of mine, and searched
   the WooCommerce source code. There was no reference that I could find in these
   places, I’m afraid.
 * Gut feeling: this is added by an email template that was edited.
 * > I don’t know what causes it to show, only that it started very recently since
   > the big WooCommerce update.
 * Could you go ahead with temporarily deactivating the **WooCommerce EU VAT Number:
   by WooCommerce – 2.8.9** plugin, before placing another test order, and see if
   the phrase still appears, or otherwise?
 * If it still appears, I’d recommend proceeding with [a conflict test, as detailed here, for finding out](https://woo.com/document/how-to-test-for-conflicts/).
 * > I am still stuck with WooCommerce labelling shipping in the incorrect tax code,
   > as a service. I need to know where that comes from, what determines the tax
   > code? I can’t see where I can select the tax code belonging to shipping.
 * As I understand, you are referring to the [product shipping classes (documentation linked here](https://woocommerce.com/document/product-shipping-classes/),
   for reference). They can be further combined with [shipping settings](https://woocommerce.com/document/flat-rate-shipping/#shipping-classes),
   and set as taxable.
 * I hope this is helpful! Please let us know if you have any further questions 
   about this matter, or if we misinterpret your concern in any way. We will be 
   happy to help you further.
 *  Thread Starter [contextquestion](https://wordpress.org/support/users/contextquestion/)
 * (@contextquestion)
 * [1 year, 10 months ago](https://wordpress.org/support/topic/tax-code-issue/#post-17871336)
 * Dear Anastas,
   Thank you for looking into this.I can’t properly test this without
   the WooCommerce EU VAT Number: by WooCommerce – 2.8.9 plugin, as without that,
   I do not have a EU VAT number input, and that means that all orders are B2C, 
   not B2B, (and thus it would not trigger the phrase).Here is the test anyway:[Backend view without EU VAT plugin](https://drive.google.com/file/d/1CJb3nVwx1Ve43chjQ5V1YDUmPVExODy8/view?usp=drive_link)
   [Mail invoice without EU VAT plugin](https://drive.google.com/file/d/112-5WjOL7HRZiHDSQYq8lWOqosFFjGv_/view?usp=drive_link)
   Thanks for the links. That’s not my issue though, but perhaps I worded it in 
   an unclear manner. I’ll use a picture to clarify it:[E-Boekhouden view](https://drive.google.com/file/d/14kBcTqNSEJIM6Gcu-QIPRL3h8kOrn6F4/view?usp=drive_link)
   The first number, €40,50, is the order amount itself, so 1 item that cost €40,50
   in a B2B sale (within Europe, excluding The Netherlands). It states ‘Goederen
   naar binnen de EU 0%’, which means that these are marked as goods for the tax
   code. The second number, €5, are the shipping costs for the order. It states ‘
   Diensten naar binnen de EU 0%’, which means that they are marked as services 
   for the tax code. These shipping costs need to be marked as goods as well, not
   services. E-Boekhouden, the program we use, uses the WooCommerce API to pull 
   information in from the orders. Their support told us that this is a WooCommerce
   problem. I need to know what is making the shipping costs themselves a service
   instead of goods. We have no issue with the tax codes for our products, nor the
   tax percentages on them. It’s only the tax code of the shipping costs themselves
   that pose an issue in B2B transactions within Europe. The tax rates are properly
   applied (they show the right tax in the right situation).As a side note, I apologize
   if I worded this harshly. I’m very direct. It is not my intention to come across
   as hostile.
 *  Plugin Support [omarfpg a11n](https://wordpress.org/support/users/omarfpg/)
 * (@omarfpg)
 * [1 year, 10 months ago](https://wordpress.org/support/topic/tax-code-issue/#post-17871717)
 * Hi [@contextquestion](https://wordpress.org/support/users/contextquestion/),
 * Zooming out on this issue, as I understand you’re trying to find where a setting
   or a string comes from. Sometimes when I’m lost in that way, the [String Locator](https://wordpress.org/plugins/string-locator/)
   plugin helps me determine where a string or a setting come from exactly, which
   plugin, which path, which file, which function.
 * Have you considered giving that approach a try?
 * Thanks!
   -OP
 *  Plugin Support [omarfpg a11n](https://wordpress.org/support/users/omarfpg/)
 * (@omarfpg)
 * [1 year, 10 months ago](https://wordpress.org/support/topic/tax-code-issue/#post-17886688)
 * Hi there 👋 ,
 * We haven’t heard from you in a while, so I’m going to mark this as resolved for
   now. Feel free to [start a new thread](https://wordpress.org/support/plugin/woocommerce/#new-topic-0)
   or reply back if you have any more questions.
 * All the best,
   Omar

Viewing 8 replies - 1 through 8 (of 8 total)

The topic ‘Tax code issue’ is closed to new replies.

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## Tags

 * [tax](https://wordpress.org/support/topic-tag/tax/)

 * 8 replies
 * 4 participants
 * Last reply from: [omarfpg a11n](https://wordpress.org/support/users/omarfpg/)
 * Last activity: [1 year, 10 months ago](https://wordpress.org/support/topic/tax-code-issue/#post-17886688)
 * Status: resolved