Products with 7% German VAT (MwSt.) _ Books & E-Books !

In Germany, books and digital publications are processed with a reduced VAT rate of 7% instead of the standard 19% on other goods. However, Shopify is confirmedly unable to offer this reduced tax rate automatically despite its claim that selecting a product "Category" ensures the local tax rate being provided.

What does this mean for us?

First, every new Product always has to be matched to a "Category" in its Product post. For products with the Categories "Books" and "E-Books," all products then have to be manually added here to this Collection after creating the Product post.

Why?

Because this Collection is linked in Settings / Taxes & Duties / EU / Germany / Product Tax Overrides and is the patch to ensure that a 7% VAT is charged vs the much higher 19% VAT. (Only "manual" Collections can be linked to the Tax Override.)