To ensure your invoices meet European e-invoicing requirements, the Tax Classification section allows you to map your WooCommerce tax rates to the corresponding Scheme, Category, and Reason defined by the EN16931 standard.
This configuration is essential for generating legally compliant electronic invoices across the EU.
What Are Tax Classifications? #
Each tax rate in your store needs to be associated with three main values:
| Field | Description |
|---|---|
| Scheme | Defines the tax system used, such as VAT (Value Added Tax). |
| Category | Describes the type of tax rate, such as Standard, Reduced, or Exempt. |
| Reason | Provides the legal justification for tax exemptions or special conditions, often referencing EU or national tax laws. |
These values follow official code lists from the EN16931 European standard, ensuring that every invoice communicates tax information in a way that can be interpreted by accounting systems and government platforms.
How to Configure #
- Go to WooCommerce → PDF Invoices → E-Documents → Taxes.
- Locate the Defaults box at the top of the table and select the general tax values (Scheme, Category, and Reason) you want to apply by default.
- In the table below, you can override these defaults for specific countries or regions if needed.
- Save your settings once the classifications are complete.
The values defined in the Defaults box are automatically applied to all entries in the table unless you specify custom ones. This allows you to set up common defaults once and only adjust exceptional cases, ensuring consistency and compliance.
Example #
If your store applies a 21% VAT rate in most EU countries:
- Scheme: VAT
- Category: Standard rate (S)
- Reason: None
If you sell an item exempt from VAT under EU law (for example, article 132 of Council Directive 2006/112/EC):
- Scheme: VAT
- Category: Exempt (E)
- Reason: VATEX-EU-132
Why This Is Important #
Accurate tax classification ensures:
- Your electronic invoices can be validated by official platforms.
- Your accounting system correctly interprets tax data.
- Your business complies with EU invoicing standards (EN16931).
Incorrect or missing classifications may lead to rejected invoices or compliance issues in cross-border transactions.
Need Help? #
If you’re unsure which category or reason applies to your business:
- Contact your accounting partner or tax advisor for guidance.
- Or reach out to our support team for assistance with your configuration.
Once your defaults are set, you’ll rarely need to change them unless your tax structure or legal requirements are updated.
