This feature is crucial for EU-businesses. Current taxation module is not fully legal in EU.
The taxation module to be fully comply with the legislation should be able to make the following calculations:
1. Private customer from EU (incl. vendor's country): must pay VAT.
2. Private and business customer from outside EU: no VAT.
3. Business customer from EU, but not from the vendor's country: no VAT.
4. Business customer from EU and from the vendor's country: must pay VAT.
The original post in this thread is not correct as a legal list of requirements. Stinga is much closer with regard to VAT requirements.
Actually, I am shocked if this info has come from a legitimate source. The wording is inaccurate for a start. The difference between a private and business customer is not quite as that list suggests, and the difference is really the type
of business. Some businesses can be VAT exempt (not pay and not add VAT), some can and have to be VAT registered (pay VAT but can reclaim VAT, as Stinga mentioned, and also have to add VAT). The business type can also make a difference (e.g. a charity). As well, of course, as the types of products and services offered.
International / EU VAT is something that each website owner that deals with international customers needs to know, and if so, I recommend researching this first. This is not directly a matter for VM (or this forum), as VM can not be everything to everyone, as far as UK / EU VAT, US Tax, etc are concerned. It is a matter for each website owner to understand and implement for their respective client base.