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Issue with EU VAT taxes

4 years 4 months ago - 4 years 4 months ago #315543 by beat
Replied by beat on topic Issue with EU VAT taxes

liaskas wrote: Allow me to do it step by step so that we avoid misconfiguration

So... first thing is to create a Geographic Zone for each one of the EU countries. Right?


Yes.

Then assign the country to it by creating a new entry using the EDIT button of the corresponding line in the geographic zones list.

Then create the tax rules for each geographic zone corresponding to a country. This links the .

Also please review your settings in Tax tab of CB Paid Subscriptions: General plugin settings, make sure to have your system seller country, state and zip are configured properly so exports can be differentiated properly.
Beat - Community Builder Team Member

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4 years 4 months ago #315547 by liaskas
Replied by liaskas on topic Issue with EU VAT taxes
Thank you for your kind help. Everything was set and now only the buyer's vat is charged.

There is only one issue remaining that i can not figure out how to resolve...

The system validates the VAT id but the validation has a strange behavior.

Example:

Buyer is from an EU country. Seller is from another EU country.

The buyers VAT id is validated through the vies system.

1. If buyer's vat id is valid, then he is exempt from VAT. (0% tax)
2. If buyer's vat id is NOT valid, then he pays VAT. (The VAT rate of his country)

On my tests the exact opposite is happening and this is wrong! (So wrong that it can get you behind bars)

1. If buyer's vat id is valid, he is charged with VAT. (The VAT rate of his country)
2. If buyer's vat id is NOT valid, then he is exempt from VAT. (0% tax)

Most probably this is a configuration setting of cbsubs somewhere. Can you please advise?

Thank you in advance!

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4 years 4 months ago #315550 by beat
Replied by beat on topic Issue with EU VAT taxes
In my tests here it works fine. Did you set for "Export sales" / "Does this tax apply for sales outside of the seller Country" to "Yes, apply this tax for export sales, but for Consumers only - B2C" ?

Regarding sales in own country, does that also apply that you don't charge VAT to other businesses ? iirc it's not the case. If it's the case, you would need to do the same setting for your "Domestic sales".
Beat - Community Builder Team Member

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4 years 4 months ago #315554 by liaskas
Replied by liaskas on topic Issue with EU VAT taxes
Thank you for your reply Beat

I had it B2B. Now i changed to B2C and it works ok.

For same country we have to charge VAT no matter if valid in VIES or not. Same country means pay VAT. Both for companies and individual persons.

So... if i understood correct i have set...

Domestic sales
Does this tax apply for sales inside of the seller Country = YES
Does this tax apply for sales inside of the seller State / Province = YES B2B
Does this tax apply for sales outside of the seller State / Province = YES B2B

Export sales
Does this tax apply for sales outside of the seller Country = NO NEVER

Seems working when testing. Please tell me if this is ok from your experience.

Thank you

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4 years 4 months ago #315562 by beat
Replied by beat on topic Issue with EU VAT taxes

liaskas wrote: Thank you for your reply Beat

I had it B2B. Now i changed to B2C and it works ok.

For same country we have to charge VAT no matter if valid in VIES or not. Same country means pay VAT. Both for companies and individual persons.

So... if i understood correct i have set...

Domestic sales
Does this tax apply for sales inside of the seller Country = YES
Does this tax apply for sales inside of the seller State / Province = YES B2B
Does this tax apply for sales outside of the seller State / Province = YES B2B

Export sales
Does this tax apply for sales outside of the seller Country = NO NEVER

Seems working when testing. Please tell me if this is ok from your experience.

Thank you


For Export sales, for countries that exempt you from collecting VAT for businesses, setting should be B2C, and for those where you charge anyway should be ALL,

For Domestic sales, all 3 settings should be "YES", Those settings are for countries, like Canada for instance, that have 3 levels of taxes.
Beat - Community Builder Team Member

Before posting on forums: Read FAQ thoroughly -- Help us spend more time coding by helping others in this forum, many thanks :)
CB links: Our membership - CBSubs - Templates - Hosting - Forge - Send me a Private Message (PM) only for private/confidential info
The following user(s) said Thank You: liaskas

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4 years 4 months ago - 4 years 4 months ago #315568 by liaskas
Replied by liaskas on topic Issue with EU VAT taxes
Thank you Beat for all your kind help.

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