Proper EU VAT support
To support B2B and B2C trading between countries in the EU, billing address should include a VAT no., and the checkout process should assign a tax class depending on country and VAT no.
I've posted this on the new issue but just to update you - Webshopapps offers EU VAT Checker extension to validate VAT numbers against VIES during checkout/registration and assigns customers to a seperate customer group. http://www.webshopapps.com/eu-vat-checker.html
Hello, our extension EU VAT Grouper http://www.geissweb.de/magento-extensions/eu-vat-grouper-magento-extension.html takes care about the VAT-ID validation and assignment to customer groups.
Jan Havrda commented
You may add support for correct VAT calculations in EU to your Magento store using this module: http://blog.write.cz/write-euvat-eu-vat-support-for-magento
Ajax VAT ID Validator (VIES VAT number validation) Extension for Magento E-Commerce:
Ajax VAT ID Validator (VIES VAT number validation) extension gives you the possibility to fully automate the process of validating a VAT number of your customers.
The EuVAT extension works very well https://technology.pillwax.com/software/euvat-for-magento.html . I can warmly recommend it until this is a default feauture.
I see that nobody figured this issue out yet...
In dead the EU Tax System are so simple, and it's work as the following:
A. For B2C operations, I have to charge my local VAT (Spain) whatever I'm delivering to Romania, or to UK.
B. If my operation are B2B, I have to do the same as the previous.
C. If my operation is B2B, and my customer have deliverance outside my home country, and he had been registered in his country as a InterEuropean operator, within validated VAT number, then I have to exempt him from my tax, and he should be his VAT by himself in his own country.
In A, and B, what it's needed in Magento is the possibility in system-sales-Tax-Tax rates-Add tax Rate, we need the possibility to assigned rather the European Union Area, as a Country, or to multi-select the 27 European Countries as applicable for the generic tax value. With this manner, I'm appling my local tax to all operation delivered to these countries.
And in the same time, need an option to say, other, which is not included in this rule, to exclude from this rule, so when I'm in Spain, and deliver to Turkey or to USA, I don't apply any VAT.
AND, in the option C, to know if how should I exempt my client from the vat I need to verify if he have a valid registration exemption, this is solved with installing the EuVAT extension into magento, which validate the TAX number online with the EuVAT system.
Conclusion, for B2B with VAT exemption, it's solved with this extension, but not all companies have the VAT exemption, because of several reasons, so we need to have a manner to apply the VAT, because if not, I have to create 27 tax rules applicable to all over EU countries, meanwhile it could be easer to do in multi-selecting in one rule, or create a new Country as EU including all member states.
Sorry for long explication, but any idea???
Anders Rasmussen commented
I installed 1.4-alpha3 and have to agree with you guys. There is no indication of this being implemented at all. There is a customer VAT field added, but it does not seem to be connected to the VAT calculation.
Who set the status of this issue to "completed", meaning solved? A software problem is not solved unless the users say so. This is a feedback forum.
Isn't this a problem that the American core team should not try to tackle on its own? Please consult and involve an European accountant or tax consultant specialized in European tax law. When he says the problem is solved, it is. Not a minute earlier.
I reopned this isues by making a new ticket:
also it need auto vat validation with the EU vat site. Shopowners have to check there costumers vat ID in real time to validate there given VAT. Regulation is that shopowners are themselves responsible for proper VAT validation
Not solved, also not in new 126.96.36.199-alpha1 (I did not checked out alpha3?, yet)
As Arne B said: it needs a differetn filosophy then USA state tax. Also the need to fill in all 24! countries 1 by 1 is not ok. Could be prefilled?
Arne B commented
I also agree it is not resolved. The process should be relatively simple (from functional point of view). User is either a
- national/international consumer
- national business
- international business with a valid EU-VAT number
For each case there is a simple rule: the first and second always have VAT, the third should never have VAT.
There probably should be a dedicated setting for this as it is in a different philosophy than the tax module that already exists. This is mainly focussed on the US where some states have tax and others don't. In the EU a product ALWAYS has tax (of course some exceptions here and there). As a rule of thumb commercial goods always have VAT.
As all EU-countries (not only the euro-countries!) deal with this the exact same way, there really is a very clear system that should be applied to ALL EU-countries.
The tax-system that currently exists needs a huge amount of configuration and work-arounds to get it working with EU-vat. As the Magento system has so much potential and great support I am sure that many EU-companies really want to use Magento, but are held back by the unclear situation on EU-VAT.
I agree its not resolved. There is no vat validation nor good help files to set up this!
Also the Vat number of the shop itself cannot be entered in teh config.
Avery tax rule must be set foir avery 27 EU countries apart. That can be done smarter! A csv file to import all those 27 EU countryes at ones schould be helpfule!
The release notes and roadmap make no indication of validation support either.
This feature is the most crucial part about integrating support for EU VAT and without it, this idea should not be set to "completed"
Richard Bailey commented
Does the release address the validation of VAT numbers and removal of VAT for intra country transactions? The post here by Anton does not appear to reference this?
This has been addressed in the new 188.8.131.52-alpha1 release which came out yesterday. Please download and test the release as we work through the alpha/beta cycle on our way to stabilizing the code for the next major release! You can read more by clicking the link which Anders has posted.
Anders Rasmussen commented
Thank you all for voting for this. It seems our prayers have been heard: http://www.magentocommerce.com/blog/comments/magento-preview-version-1400-alpha1-is-now-available/
Richard Bailey commented
This is an absolute must. There are plenty of posts about this on the Magento forums.
The VAT number needs to be validated and if validated VAT should be removed from the transaction.
VOTE HERE! This is an essential feature for most EU vendors.
Would also be nice if this supported UK VAT rules about mobile phones. If the order is of value £5k and above, the 'reverse VAT' rule comes into play and no VAT is charged to the customer.