VirtueMart 2 + 3 > Product pricing

VAT for e-commerce changes in EU effective 1 July 2021

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e-trader:
Hello All.

As of 1 July 2021 major changes in EU VAT regulations take place. If you have a turnover of > 10.000 EURO per year to all other EU member countries combined, the seller is obliged to charge the VAT rate of the buyer's country. There are MANY countries and many VAT rates - a bit of a nightmare!!  Reference https://ec.europa.eu/taxation_customs/business/vat/vat-e-commerce_en and your local VAT office.

These changes result in a pricing challenges that I would like to outline.

Representing a brand, the preference is to keep the product price INCLUDING VAT consistent towards the consumer. Each country the same EURO price for the same product. It means the margin for us as a seller is variable, as some countries have 19% VAT and others 22%. The advantage of this is consistent pricing for the consumer + we get to print catalogs with consistent pricing.

The way VM is designed to work is to add the VAT tax using rules, on top of EX VAT prices. resulting in variable end prices per country.

I have considered adding different EX VAT prices to all products, which gives consistent prices as a result. With 20+ countries and VAT rates it results in each product having 20+ prices attached to it. This is not a desirable situation.

With these EU VAT changes, there is a desire to be able to set an end price and calculate the TAX rates the other way around.

Feedback please?

I wonder, how you deal with these changes?

Sincerely,

E-trader.

jjk:
I didn't check if it is the same in all EU countries, but the German price indication law does not require that the respective sales tax rate be displayed in the online store. It only requires that the price including VAT, i.e. the gross price, must be displayed to consumers. However, the tax rate behind this is not relevant. It must only be apparent to the consumer that the price includes sales tax. So I simply don't display the VAT rate and VAT amount, just 'incl. VAT'.
(I've been doing this since I switched to VirtueMart 15 years ago) :)

pinochico:
I wonder too :)

jjk:
The new rules are available here:
 https://ec.europa.eu/taxation_customs/sites/default/files/oss_guidelines_en.pdf

And here is some information about 'OSS' in English on the Austrian 'Business Service Portal':
https://www.usp.gv.at/en/steuern-finanzen/umsatzsteuer/Umsatzsteuer-One-Stop-Shop/EU-OSS/Registrierung-zum-EU-OSS.html

For some shops this extension bundle will be helpful:
https://extensions.virtuemart.net/vm-orders/moss-tax-plugin-detail

Note: If you are located in a EU-member state and your annual net turnover with other EU-countries is below 10000 Euro, you can ignore the new rules.

nk:
"With these EU VAT changes, there is a desire to be able to set an end price and calculate the TAX rates the other way around."

I think too, that this would be very important feature for virtuemart.

It is ok to display only the gross price (including VAT), but this price is now different in each (delivery-)country.
But in some cases I want to have the save consumer prices in all countries.

So it would be very useful to set the gross price, and the system calculates back to the net price.

Now I can realize this by using an override price - but in this case a discont will be displayed.

Best regards
Norbert

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