Shipmondo has improved how VAT on shipping is handled in our Kustom Checkout integration. In Sweden and Norway, a single order can contain items with very different VAT rates. We’ve therefore expanded the system so you can choose between three methods for setting the VAT rate on shipping:
Fixed: You set a fixed VAT rate (for example 25%) that always applies to shipping, regardless of what the order contains.
Weighted average: The VAT rate is calculated dynamically based on the proportional split of items in the cart. This gives a mathematically precise distribution of the VAT.
Maximum rate: If an order contains items with different VAT rates, the system automatically picks the highest rate in the order and applies it to shipping. This is a common practice that protects against underpaying VAT on mixed orders.