Author Topic: VAT for e-commerce changes in EU effective 1 July 2021  (Read 1695 times)

e-trader

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VAT for e-commerce changes in EU effective 1 July 2021
« on: June 26, 2021, 18:36:56 pm »
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

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Re: VAT for e-commerce changes in EU effective 1 July 2021
« Reply #1 on: June 26, 2021, 22:44:24 pm »
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) :)
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pinochico

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Re: VAT for e-commerce changes in EU effective 1 July 2021
« Reply #2 on: June 27, 2021, 09:05:11 am »
I wonder too :)
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jjk

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Re: VAT for e-commerce changes in EU effective 1 July 2021
« Reply #3 on: June 27, 2021, 15:47:26 pm »
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.
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nk

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Re: VAT for e-commerce changes in EU effective 1 July 2021
« Reply #4 on: July 02, 2021, 12:35:49 pm »
"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


pinochico

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nk

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Re: VAT for e-commerce changes in EU effective 1 July 2021
« Reply #6 on: July 02, 2021, 15:29:25 pm »
very interesting component/plugin,

as I see, it also uses the geolocator - so do you have the same problem with loading data for die ip database?

and another question for the calculation of the prices:
is it possible to calculate back? what I mean is to set the gross-price for a product (incl. VAT) and calculate the VAT and the net-price from gross-price.
This would be useful to have the same consumer price in 2 countries with with differenz VAT-Rates

pinochico

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Re: VAT for e-commerce changes in EU effective 1 July 2021
« Reply #7 on: July 02, 2021, 20:51:57 pm »
send question to rupostel, is not my app
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Milbo

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Re: VAT for e-commerce changes in EU effective 1 July 2021
« Reply #8 on: July 12, 2021, 18:11:17 pm »
nk
you may use my programm here https://extensions.virtuemart.net/shopper-order/orders/bundle-eu-vat-id-checker-moss-tax-synchroniser-detail

We both share almost the same geolocator. I dont know his changes, but I proved that the maxmind database works, if you register there. It is still free.

The bundle has
- the geolocator
- the euvat id checker for companies
- the Moss component, which creates the EU rules for you. I just overhaul it. I added also all reduced taxes interesting for ecommerce ( so not the ones for real estate).

Pure Moss ist just 12 euro.
https://extensions.virtuemart.net/product/products/moss-tax-plugin-detail
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diri

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Re: VAT for e-commerce changes in EU effective 1 July 2021
« Reply #9 on: July 15, 2021, 09:16:18 am »
Hi Milbo,

I checked your product page and could not find information about one issue:

You (german citizen) stay in Austria or Italy or <choose country inside or outside EU> and set an order with billing address in Germany and [edit] maybe [/edit] delivery address in Germany [edit] or any other country[/edit].

Which tax will be applied?

Thank you!

diri

jankoo

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Re: VAT for e-commerce changes in EU effective 1 July 2021
« Reply #10 on: October 08, 2021, 11:18:30 am »
none of these extensions solve the issue in the post.. i got the same issue.. we need backward calculation so the final price is same for all countries and the VM just break down the VAT in the cart and invoices.

nk
you may use my programm here https://extensions.virtuemart.net/shopper-order/orders/bundle-eu-vat-id-checker-moss-tax-synchroniser-detail

We both share almost the same geolocator. I dont know his changes, but I proved that the maxmind database works, if you register there. It is still free.

The bundle has
- the geolocator
- the euvat id checker for companies
- the Moss component, which creates the EU rules for you. I just overhaul it. I added also all reduced taxes interesting for ecommerce ( so not the ones for real estate).

Pure Moss ist just 12 euro.
https://extensions.virtuemart.net/product/products/moss-tax-plugin-detail

Studio 42

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Re: VAT for e-commerce changes in EU effective 1 July 2021
« Reply #11 on: October 11, 2021, 09:56:09 am »
jankoo, you do not need to apply the right tax per country.
You do not know before end of the year if you have sold 10.000 EURO per year
You have to declare your products excluded VAT and you pay tax per countries calculated from this no Vat total.

jankoo

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Re: VAT for e-commerce changes in EU effective 1 July 2021
« Reply #12 on: October 14, 2021, 15:06:36 pm »
yes, i have to apply the right tax per country.. thats the basic of the taxes by country in eu..
i know because i already sold 10000€ last year and this year.. im already paying vat tax in every country in eu..
i can not declare my product excluded vat.. its quite opposite. all prices must be tax included for customers..
im not sure if you dont understand this at all or just trying to sell something..
i need one - the same sale price for all countries, tax included.. and need just to calculate how much from the price is base price, and how much is the tax in that country after user choose his country in the cart. 
but all this is epic pain with vm. i already bought plugins but none of them do the job..

Studio 42

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Re: VAT for e-commerce changes in EU effective 1 July 2021
« Reply #13 on: October 14, 2021, 19:28:43 pm »
I wrote a plugin for 2 customers and the accountants wanted the price excluded tax so they declare the tax from price without tax to each country in EU
If it's wrong, then the 2 accountants are stupid ?