Author Topic: VAT system for EU-businesses for VM1.1 only [edited to avoid confusion]  (Read 11515 times)

Geister

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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.


To sort out Business customers (according to the classes above) there must be additional field: "USt.ID". The validity of USt.ID (VAT-number) should be checked via the corresponding external source.

Full description of the problem is explained eg. here:
http://www.magentocommerce.com/boards/viewthread/19712/P0/




current config: Joomla Version 1.5.12 + VirtueMart 1.1.3 stable

dj_hardbeat

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Virtuemart VAT system for EU-businesses
« Reply #1 on: August 26, 2009, 11:34:46 am »
It would be great if this could be implemented correctly! The above is completly correct! Thanks! ;)

stinga

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Virtuemart VAT system for EU-businesses
« Reply #2 on: February 17, 2010, 23:14:48 pm »
G'day,

I think this is probably more correct...

Assuming seller is in the EU...

1. Any customer with an address outside the EU - no VAT payable
2. No VAT code and in EU - pays VAT
3. VAT code and in EU - does not have to pay VAT (it can be claimed back)

The separation between 1 and 2,3 works since it is address based (assuming customer does not lie, but that is not the sellers problem)

If they don't have a VAT code (and you can find plenty on the web) then you must pay VAT, if you do have a VAT code then they might not have to pay VAT, they can pay and reclaim or give VAT code and not pay.

(I think all that is correct, I am not an expert and would willing to have any corrections made!! :-)
Stinga.
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MikeUK

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VAT system for EU-businesses
« Reply #3 on: February 18, 2010, 02:19:57 am »
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.
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stinga

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Re: VAT system for EU-businesses [edited to avoid confusion]
« Reply #4 on: February 18, 2010, 11:13:24 am »
G'day all,

I agree with MikeUK, each business is different and I doubt VM will ever be able to cope with all scenarios.

I wonder if it could be added as a module a bit like shipping?
I think we could do with a few more fields being added to VM tables to allow things like vat being captured.
Stinga.
614869 products in 747 categories with 15749 products in 1 category.
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Repeat View  1.064s     0.561s     1.100s          1.064s       4             1.221s       4

scept1c

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Re: VAT system for EU-businesses [edited to avoid confusion]
« Reply #5 on: February 19, 2010, 10:03:35 am »
will this be implemented? or is it necessary to find out the legal list of requirements at first? what's the problem?

stinga

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Re: VAT system for EU-businesses [edited to avoid confusion]
« Reply #6 on: February 20, 2010, 14:05:24 pm »
G'day,

It could be implemented, but I think it should a module/plugin somehow!
Whilst I can develop/code I don't know how to create modules for J!VM (yet).

The legal list would be good to start with.
Stinga.
614869 products in 747 categories with 15749 products in 1 category.
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MikeUK

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Re: VAT system for EU-businesses [edited to avoid confusion]
« Reply #7 on: February 20, 2010, 15:22:24 pm »
will this be implemented? or is it necessary to find out the legal list of requirements at first? what's the problem?

Not sure what you mean. Do you want to implement this? VM is an open-source project, anyone can contribute.
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tradebox

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Re: VAT system for EU-businesses [edited to avoid confusion]
« Reply #8 on: June 13, 2010, 16:21:16 pm »
I have something to add which might not be well known and something I need to implement on my particular 'shop'.  My company trades in used mobile phones to the trade, now... There is a VAT exemption if the customer is an EU VAT registered business and their order exceeds £5000 the order becomes VAT exempt (Reverse charge from one VAT registered business to another) details are here: http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&id=HMCE_PROD1_028649&propertyType=document

So my question is, is there any way of doing this currently in VM (reduce VAT to 0% when the order is from a VAT registered trader and the total order of mobile phone products only exceeds £5000) or will I have to get a freelancer to write a bit of code?

guardiano78

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Re: VAT system for EU-businesses [edited to avoid confusion]
« Reply #9 on: July 14, 2015, 13:15:50 pm »
anyone solved this issue in virtuemart 3 ?

balai

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guardiano78

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Re: VAT system for EU-businesses [edited to avoid confusion]
« Reply #11 on: July 14, 2015, 20:50:40 pm »
thank you