VAT configuration guide

9 years ago
lpandolfini wrote:
Could this be the cause of my problem?

9 years ago
OK so.. thank you Andrei and Steve to help me figure this out!

Best regards
Luca Pandolfini
9 years ago
Perhaps this thread could be made sticky Andrei?
8 years ago
After some puzzling that drove me a bit crazy I can fully confirm Luca's finding: "The problem is that the user I used before to check this procedure was created from scratch in the admin area, and not from the public registration page."

I havent changed a single line of code so I can confirm it's a bug:

If you create a user from the admin area the address that is used to determine if EU VAT = 0% is applicable is apparently not set and therefore it only shows prices without tax after the user has selected a Shipping (or Billing) address in the checkout procedure once.

When you create a user via the store it all works fine (so EU VAT = 0% based on the address of the customer without registering a Shipping or Billing address.

Although not many people will bump into this I think it is worthwhile to fix this bug it can highly annoy customers and administrators because tax is calculated when it shouldnt and all the settings look ok....

Thanks! Stephan.
8 years ago
Stephan, I suggest you send Andrei a private message or email pointing him to this thread so that he knows about the bug.

Unfortunately I don't have time to look into it myself as I've been off sick and have work to catch up with.

8 years ago
Of course things can get a lot more complicated and I would hate to see the VAT rate being based on the "Shipping Address" because that would not be correct! The determination needs to be made manually because only the purchaser will know the real situation.

Intra-EEC VAT exemption can be based on FINAL delivery address.
For example if a VAT registered client based in Portugal is ordering from a UK supplier but has a freight forwarding agent based in the UK then the "Shipping Address" will show the agent's UK address and the "Billing Address" will most likely be in Portugal.
In this case UK VAT should not be charged despite the Shipping Address being in the UK - the proof of export from the UK must then be provided (in the form of the International delivery note / CMR showing the final delivery address outside the UK) to the original supplier (by the freight agent or end customer) for inspection by HMRC.

Alternatively the same client may still opt to use his freight forwarder but to accept UK VAT being charged on the goods.
Hence the manual selection of VAT treatment being necessary.

Basic rate of VAT in Portugal = 23%, UK = 20%
So for items for "own use" UK VAT could be paid and for "re-sale" the exemption could be used.
5 years ago
Perhaps this thread could be made sticky Andrei?
5 years ago
Moved to documentation - Thanks again for this contribution