WooCommerce allows you to specify whether your shipping rates are subject to VAT, and under which rules.

Go to the WooCommerce menu, then the Settings submenu, the Tax tab, and then the Tax Options sub-tab.

Look for the ‘Shipping tax class’ field. It offers several options:

• Shippping tax class based on basket items — WooCommerce applies the tax class of the highest-taxed item in the cart. This is the default behaviour.
• Zero rate — Shipping rates are not subject to tax.
• Reduced rate or any other tax rate you have created — The relevant tax is always applied, regardless of the contents of the cart.

Please select the value that applies to your tax situation and the relevant legislation.

💾 Click ‘Save changes’ at the bottom of the page.