Tax done right?

[Cassim]

Hey all.

 

So here comes the big question. 
We are planing to... move into EU. But we have one big issue. 

We have a WSP that are fixed. So no matter where you live in EU or other, the pay price is fixed. This is even regardless of the VAT/TAX rate. So taking a show here

Item 1 fixed sales price 19,99€:

How the system needs to work. 

• Customer from Denmark :
  RSP : 19,99 € (fixed) 
  TAX (25%): 3,99€  
  RSP without TAX : 15,99
• Customer from Cyprus : 
  RSP 19,99 €
  TAX (19%) : 3,19€
  RSP without TAX : 16,8€

So no matter what i do, my TB is doing it wrong, as its doing this : 

• Customer from Denmark :
  RSP : 19,99 € (fixed) 
  TAX (25%): 3,99€  
  RSP without TAX : 15,99€
• Customer from Cyprus : 
  RSP 18,92 €
  TAX (19%) : 3,02€
  RSP without TAX : 15,99€

 

So how do i get my vat to work in the right way.?

So that if i change country & vat-rate, the price will stay the same, but just the tax amount will change.? 

Will that be a custom coding part, or is their a setting or something to do this?  

[Cassim]

  On 9/29/2020 at 1:36 PM, zen said:

Even with specific prices.. I am not sure it is legal to do that !

 

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  On 9/29/2020 at 1:35 PM, haylau said:

Simple answer is no. As that is not how value added taxes work, then I guess no off the shelf e-commerce solution will allow you to do that

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  On 9/29/2020 at 1:33 PM, datakick said:

The answer to your question was provided many times already, you just don't want to acknowledge it.

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Then please tell me how https://www.humblebundle.com/store/empire-of-sin this can do it. Have they their own system?
As they charge the same price no matter what currency you live in.

This is the way the digital industry is working if you like it or not 😉 

Their are no issues here no matter what. 

And yes i have talked with our big accounting firm, that work with getting shops selling in EU, so they know the law and how to do it. 

 

  On 9/29/2020 at 1:32 PM, zen said:

no TB can't do this and this is illegal to change the core price because of customer country.

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We don't do anything based on country, we do it on currency. And this is how the digital world is working 😉 Its not physical. 

Its 2 very different things, and their are 2 laws based on if you sale physical or digital items. 

 

 

[zen]

  On 9/29/2020 at 1:49 PM, Cassim said:

We don't do anything based on country, we do it on currency. And this is how the digital world is working 😉 Its not physical. 

Its 2 very different things, and their are 2 laws based on if you sale physical or digital items.

 

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Please explain what your accounting told you, what is the law in EU for selling digital products and how to apply VAT for each customer country and currency and VAT rates...

[haylau]

Just because another website is doing something it does not mean it is legal. This suggests they might not be tax registered and therefore not charging any taxes at all  if they are charging tax they have to provide invoices  this suggested they are not charging tax at all  

From their website:

Can I get an invoice or tax receipt for my purchases? 

Our Terms of Service states that our service is only for the sales of products and product rights to customers for their personal, non-commercial use. As a result, we are not able to provide business invoices or receipts for business purchases.

[Cassim]

  On 9/29/2020 at 1:51 PM, zen said:

Please explain what your accounting told you, what is the law in EU for selling digital products and how to apply VAT for each customer country and currency and VAT rates...

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Simple. 

I have to charge the vat rates based on each country, and starting from next year i need to have a VAT number in each country. If i like to sale into their, as the one-stop-vat system will be removed, so i need to submit vat in each country. 

And i can sale the games to the RSP, without any issues. Thats no problem. And substract the vat from the RSP. 

The issue is that if i do it that way with having a fixed RSP i will have to remove the VAT from the shop, and let my accounting system handle the vat rates and invoices. 

[zen]

  On 9/29/2020 at 1:58 PM, Cassim said:

Simple. 

I have to charge the vat rates based on each country, and starting from next year i need to have a VAT number in each country. If i like to sale into their, as the one-stop-vat system will be removed, so i need to submit vat in each country. 

And i can sale the games to the RSP, without any issues. Thats no problem. And substract the vat from the RSP. 

The issue is that if i do it that way with having a fixed RSP i will have to remove the VAT from the shop, and let my accounting system handle the vat rates and invoices. 

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Good luck then 🙂

[datakick]

  On 9/29/2020 at 1:58 PM, Cassim said:

The issue is that if i do it that way with having a fixed RSP i will have to remove the VAT from the shop, and let my accounting system handle the vat rates and invoices. 

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Even if you disable Taxes in your store, you are legally required to display VAT informations them on your website, during checkout, etc. And the displayed numbers on your website must be the same as the one displayed on the invoice you will issue later. 

Thats a lot of work. 

[Cassim]

  On 9/29/2020 at 2:03 PM, datakick said:

Even if you disable Taxes in your store, you are legally required to display VAT informations them on your website, during checkout, etc. And the displayed numbers on your website must be the same as the one displayed on the invoice you will issue later. 

Thats a lot of work. 

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This is true, and that is why i ask if it can be done on some other way 😉 So that we avoid having this up and down system.