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Suggestion Charging VAT

Discussion in 'Suggestions' started by Brett Chitty, Nov 17, 2016.

  1. Brett Chitty

    Brett Chitty New Member

  2. paradoxG(r)eek

    paradoxG(r)eek New Member

    Adding VAT is a bit complicated work but I do agree that is a need for ALL sites selling online, unless if they'll never have customers from EU countries.

    I've added it to my (Free) eCommerce AddOn for vBulletin 4.x. The way that it works, according to EU laws is (as exmple I'll get that Shop is locating in UK):
    1. If client's permanent address is outside EU: No Tax. Something that needs to clarify here as there is a confuse. Citizen of EU country and not Euro zone country.
    2. If client's permanent address in within European Union then:
      1. If it has a valid VAT id: No Tax
      2. If it hasn't: Must pay Tax
    3. If client's permanent address is within UK (shop's country) then he must pays tax even if he has a valid VAT id.
    4. Vat percentage is the shop's location VAT and NOT the client's country VAT.
    As last note, if the author of Product Manager wants to use my own functions, he can download and get any part of my code there.

  3. Chris D

    Chris D Xen Resources Developer Staff Member Xen Notices

    My understanding is that this is incorrect. VAT should be charged according to the rate the customer would pay in their own country.
  4. paradoxG(r)eek

    paradoxG(r)eek New Member

    I need to check my code because when I was coding that part (2 years ago), had some changes to this case.
    It was the days that EU added in their laws that even if the store owner is not EU citizen must collect EU VAT. Otherwise he must place a banner on his site saying that he does not accepts clients from EU.

    That was the reason that Envato marketplace (now locating in USA, before in Australia, so nothing in common with EU) now collects EU VAT from EU citizens.

    I've a doubt that what your said is valid when the store owner is outside EU. In this case, and as there is no VAT on his country, he must collects client's VAT.
  5. lms

    lms New Member Xen Product Manager

    I add to the suggestion. It's necessary for on-line sales into Europe and more.

    paradoxG(r)eek likes this.

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