Per-customer VAT rates
Recent rules in the EU seem to force merchants to charge the VAT rate of the country in which the customer lives. Is there a way to support this easily in CheddarGetter? Right it seems only one VAT rate can be applied.
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Support Staff 1 Posted by Marc Guyer on 12 Nov, 2010 02:20 PM
We could add this feature but I'm not sure it's required. Can you reference any sources on the subject?
2 Posted by joshua on 12 Nov, 2010 02:45 PM
After further investigation it turns out that this only applies when doing business-to-business transactions, so it may not affect me. But it's good to keep in mind that these rules changed this year.
Basically, if your customer is a person, you charge your VAT rate. If your customer is a business, you charge their country's VAT rate.
Maybe I should have started this business in the US :)
See the 'internet' section here which defines internet goods as 'services':
http://www.revenue.ie/en/tax/vat/leaflets/distance-sales-eu.html
And the new rules for taxation of services:
http://www.revenue.ie/en/tax/vat/leaflets/place-of-supply-of-servic...
A thread:
http://www.warriorforum.com/main-internet-marketing-discussion-foru...
Support Staff 3 Posted by Marc Guyer on 15 Nov, 2010 04:58 PM
That's sounds like a big hassle... In order to support the new rules, we'd be happy to implement a per-customer override of the default rate.
4 Posted by joshua on 15 Nov, 2010 05:17 PM
Thanks. I will bring this up again when it becomes a real issue.
5 Posted by agomez on 10 Feb, 2011 10:47 PM
I think Marc is wrong. If your business is B2C is located at the supplier country and then apply supplier VAT rate, in the other hands if your business is B2B then the services is located in customers country hence no VAT has to be apply. Notice in order to consider your customer a business, so a taxable person, your customer VAT needs to be validated by this website http://ec.europa.eu/taxation_customs/vies/ if not, the business is located in supplier country. What it would be nice for you is to support automatic VAT validation through http://ec.europa.eu/taxation_customs/vies/checkVatService.wsdl
Cheers
Dean closed this discussion on 16 Jan, 2013 04:05 PM.