This is a rough and ready tutorial on how to set up NopCommerce VAT support for shops in the EU.
I'm starting with a fresh install of NopCommerce 1.8. Unless stated the following tasks are mandatory/critical.
1. Log into the Administration area
2. Go to Configuration, Tax, Tax Settings.
2a. Check/tick EU VAT enabled. This will ensure that tax is charged only for shipments in the EU.
2b. Select the country your shop is in.
2c. Optional: If applicable, check Allow VAT exemption. This will ensure that your VAT registered customers who are shipping within the EU but outside the shop country will not be charged VAT.
2d. Optional: If you checked "Allow VAT exemption" then you might want to check the "web service" and "notify admin" boxes too. This will check VAT numbers submitted by your customers against the EU database. Note: This process works but the communication of the statuses to the admin is a bit poor (and can't be seen in admin area). I hope to improve this some time.
2e. Set Tax Based On to "Shipping Address".
2f. Hit save.
3. Go to Configuration, Location, Countries. Check that all the countries which are in the scope of the VAT have "Subject to VAT" set to true. Note that as far as I know Jersey, Guernsey and the other Channel Islands are not part of the UK and are not within the scope of VAT. If you sell to those places you may need to change that.
4. Go to Configuration, Tax, Tax Classes. Set up a tax class for each VAT rate in force in your country. For example, "Standard Rate", "Zero rate", "Discounted rate". Delete any classes already there.
5. Go to Configuration, Tax, Tax Providers. Make the Fixed Rate Provider the default and save.
6. Now we need to edit the tax rates which will be charged by the fixed rate provider, so hit Edit. You'll see your VAT rate categories there if you go to the Configuration tab. Now just enter the percentage rates e.g. 17.5, 0%, 5%, and save.
7. That's the VAT support set up. Now you need to make sure that all products have a tax category assigned to them. In most cases this will be the Standard Rate of course.
Hope that helps someone. Corrections and suggestions for improvement welcome.
I intended to post this on a new NopCommerce/tech blog but I haven't got round to setting it up yet. Will do so some time!