If my store is based in the UK and I sell to a customer based in another EU country who is registered for VAT in their own country I should not charge them VAT, if however they are not registered for VAT I do need to charge them VAT.
The tax calculator in VM 2.0 therefore needs another option "Registered for VAT?" that can be used in conjunction with the country option to decide whether to apply the tax rule or not.
Customer registration also needs to capture the customers VAT number.
These are fundamental legal requirements in the EU, and this was a big problem with VM 1. series and it's hugely frustrating that it hasn't yet been addressed correctly in VM 2.0 - can you advise when this might be rectified?
Thanks,
Ian
www.estm.co.uk (http://www.estm.co.uk)
I'm bumping this.
I'm either wrong, in which case I'd have expected someone to jump on this and tell me so, or I'm right. If I'm right the lack of response suggests nobody is bothered that Virtuemart doesn't comply with EU VAT regulations?
Ian
Very frustrating!
For those in the community that may develop this for VM2 here is a link to the EU directives.
http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/index_en.htm (http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/index_en.htm)
And a extract of what Ian is referring to:-
VAT on goods moving between Member States
No frontier controls exist between Member States and therefore VAT on goods traded between EU Member States is not collected at the internal frontier between tax jurisdictions.
Goods supplied between taxable persons (or VAT registered traders) are exempted with a right to deduct the input VAT (zero-rated) on despatch if they are sent to another Member States to a person who can give his VAT number in another Member State. This is known as an "intra-Community supply". The VAT number can be checked using the VAT Information Exchange System (VIES).
The VAT due on the transaction is payable on acquisition of the goods by the taxable customer in the Member State where the goods arrive. This is known as "intra-Community acquisition". The customer accounts for any VAT due in his normal VAT return at the rate in force in the country of destination.
What VM version are you using? 2.0 is not precise enough, as EU VAT was corrected in 2.0.10 and VAT reg number lookup check is now available: http://extensions.virtuemart.net/extensions-virtuemart-2/eu-vat-checker-detail
Is it possible just to request the VAT Id in the registration form and manually check at VIES ?
I prefer a manual checking because I like to print any VIES confirmation and make then the refund.
I'm just migrating to 2.0.1 and I'm really lost at the new version, couldn't find any step by step documentation :-[
Hello
QuoteI'm either wrong, in which case I'd have expected someone to jump on this and tell me so, or I'm right. If I'm right the lack of response suggests nobody is bothered that Virtuemart doesn't comply with EU VAT regulations?
No we did. And it is the reason why we developed the EU VAT plugin mentioned above.
The best/easiest option is to use the EU VAT ID plugin.
If you do not want to use it, and want to check manually the VAT, then add a field in the registration form.
Add rules per zone (Europe, outside Europe, UK), and per shopper groups.