C3 UK shipping VAT

Based on HMRC guidelines, correctly calculate UK pro-rata shipping VAT based on product rates in orders.

This extension allows you to comply with the UK VAT guidance by making your shipping VAT based on the rate of the goods sent. This is calculated pro-rata, so if 30% of the goods in an order are standard rated and then rest at zero-rate, then only 30% of your shipping will be liable for VAT.



Can Magento calculate shipping VAT correctly for the UK?
Of course - just use standard rate. Or zero rate if all your goods are zero-rated.

What if some are zero-rated and others aren't?
Ah, then sorry - Magento can't calculate your shipping VAT, because according to HMRC, the shipping VAT rate should be "the same rate as the goods being delivered or posted" (see this VAT guidance), so it should be pro-rata'ed based on the goods sent.


  • Choose which countries pro-rata shipping VAT applies to.
  • Enable/disable by website.
  • Also works for taking admin orders.
  • Correctly displays shipping VAT and total VAT in orders if summaries are enabled.



Compatible with

1.6, 1.7, 1.8, 1.9, 1.9.1, 1.9.2,


Tested on Magento CE >= 1.6. Not designed for Magento < 1.4.

Tax must be set up on your site and products in order to calculate shipping VAT.