In the next version, I think the Magento team should...

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.

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    Anders RasmussenAnders Rasmussen shared this idea  ·   ·  Flag idea as inappropriate…  ·  Admin →

    20 comments

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      • UbunterUbunter commented  ·   ·  Flag as inappropriate

        Hello,
        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.

        So,
        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 RasmussenAnders Rasmussen commented  ·   ·  Flag as inappropriate

        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.

      • mcSherpamcSherpa commented  ·   ·  Flag as inappropriate

        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.

      • KeesjanDeelstraKeesjanDeelstra commented  ·   ·  Flag as inappropriate

        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

      • KeesjanDeelstraKeesjanDeelstra commented  ·   ·  Flag as inappropriate

        Not solved, also not in new 1.4.0.0-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 BArne B commented  ·   ·  Flag as inappropriate

        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.

      • keesjankeesjan commented  ·   ·  Flag as inappropriate

        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!

      • sonjasonja commented  ·   ·  Flag as inappropriate

        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"

      • MagentoMagento commented  ·   ·  Flag as inappropriate

        This has been addressed in the new 1.4.0.0-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.

      • Richard BaileyRichard Bailey commented  ·   ·  Flag as inappropriate

        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.

      • RobRob commented  ·   ·  Flag as inappropriate

        VOTE HERE! This is an essential feature for most EU vendors.

      • PhoneDevil.comPhoneDevil.com commented  ·   ·  Flag as inappropriate

        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.

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