VAT configuration guide

Hello Everybody, Hello Andrei,

With the new EU VAT reform of July 1st 2021, we have to consider new circumstances. First of all I recommend to change the documentation such that not the 'fixed tax provider' should be applied but the 'tax provider by country'. Because in most cases you will now have to charge the VAT rate from the country of the shipping address.

But there is more to consider. As far as I have read articles about that topic it is not permitted that the user sees the resulting vat rate and hence end price depending on the shipping address in a late phase of checkout, which is actually one step before committing the order. Instead it should be provided when the user enters the shop, either by actively setting the country for which he/she wants the vat to be calculated (e.g. with a popup similarly to the eu cookie law popups) or by analyzing the country with the IP adresse.

Both at the moment does not take places. For an anonymous user the default tax country is used or no vat is applied.

I'd like to know if there a any attempts yet to change the plugin regarding the above described problems. I have some ideas how to change or extend the Nop.Services/Tax/TaxService.cs but I really don't think that my solutions would be as professional as a solution from nopTeam.

Kind regards, Stephan

schurig wrote:

Hi Stephan! Thanks a lot for your suggestion! Here is a work item

As an addition to the remarks of Stephan;
because of the new VAT rules for the UK, when we now sell and ship something from Europe to the UK and the total amount is below GBP 135,- we need to apply VAT to the selling price and let the buyer pays the VAT to the online shop and not during import in the UK. The shop is then charged by UK customs during import with the VAT.

For shipments over GBP 135,- we do not need to apply VAT because the buyer will pay the import taxes to the UK customs.
As far as I know we cannot configure this situation in nopCommerce