EU One Stop Shop rules for VAT on intra-EU sales starting July 1, 2021

[30knees]

Deadline: July 1, 2021

See: https://ec.europa.eu/taxation_customs/business/vat/online-sellers_en

In brief, if you sell more than 10k Euro net within the EU excluding your home country, each product has to have the destination country's VAT rate.

Has anyone implemented this yet?

I see how to give each country one or multiple tax rates, but I don't see how to assign each product a specific tax rate based on the country it's being shipped to.

For example, if I sell widgets and food to Austria from Germany, I'll need to have Austria's reduced tax rate for food products and their regular tax rate for widgets. And this for every EU country. 

What am I missing? 

[30knees]

After looking at how other shop systems do it I came across a guide for Prestashop that helped me figure it out: https://www.prestashop.com/en/blog/european-union-vat

1. You create the required tax rates per country, so eg DE standard, DE reduced, AT Standard, AT reduced.
2. You give your product the required tax rate of your home country.
3. You go to tax rules and create a tax rule called standard, reduced, etc. You modify it so that it reflects the tax rates you entered above per country.

[the.rampage.rado]

1. The tax rules should have been created already.

2. The tax rules must be applied according to customer address (not yours) if you sell more than XXXXX Euro in that country.

[haylau]

If selling from the UK I think That is only if you send the parcel duty / VAT paid? 

If you send duty / tax unpaid then your shop should be net prices, and the customer pays vat on import, and therefore no need to register for VAT in those countries or IOSS

Of course inter EU selling  is different

Edited June 19, 2021 by haylau

[datakick]

On 6/19/2021 at 1:39 PM, 30knees said:

each product has to have the destination country's VAT rate.

This is how selling virtual products worked for years, and thirtybees supports it correctly.

Look at 'EU VAT For Virtual Products' tax rule. Once you hit 10k euro limit, you should set this rule (or its clone) to all your products, and it should work properly

[Smile]

We are also currently working on a module that keeps the end price the same and the store owner takes depending on the country a bit more margin or a bit less. 

[toplakd]

What I would also like to see in the future on stock themes, that tax percentage is displayed.

Now saying XX EUR, tax incl.

I assume most would like to see the amount of percentage like this XX EUR, 27% tax incl. if the shipping is into Hungary, or XX EUR, 25% tax incl. if customer is from Sweden.

 

[Smile]

Yeah that can be done but we like to see it a bit differently and want the same price for aal stores. We adsorb the few % more or less in taxes. We now calculate the sales price from the main store back to a new base price for another store.

I now think about how it should work for one store installation...

[oliiix]

So I have an austrian store also shipping to germany. For germany my products need to have a different vat. My products are set up with the austrian vat.

I created new taxes settings under localization > taxes (named taxes germany). Then I went to localization > tax rules and deleted germany from the taxable goods rule (the standard applying to austria). Then I created a new tax-rule for germany only and assigned the new taxes to this rule.

But when I change my (only) address from my client account to a german address all the taxes disappear and I only see the netto-price.
Also strange is if I set the tax-rule inside the product edit form to the new rule, it also shows the nettto price under the brutto price (attached screenshot). The tax for Taxable Good Germany should be 19%, not 0. Am I misunderstanding something? 🙂

To the general problem of having diff taxes for germany only, do I need to change all my products to virtual products now? Or shall I wait for the module to it to properly work in the end? I don't yet get it 😉 I like the idea of prices staying the same, yet making this an option would also be great 🙂

Edited November 1, 2021 by oliiix

[toplakd]

This is my setup:

 

When clicking on EU Standard rules, there are all Standard rate taxes for all EU Countries

 

And this is how its set in product/price for the product with standard tax rate.
I don't have any product with reduced tax rates.

 

So the correct tax is then added based on customers shipping location and it's working flawlessly.

Yes, you can also use the integrated EU Tax for virtual products.

Yes, you will need to change all the products for the new tax rules to apply.

No, end prices with tax will not be the same for every EU country as each country has different tax rate.

Edited November 1, 2021 by toplakd

[oliiix]

wow @toplakd thank you very much for this detailed walkthrough!!! I was able to see my mistake, thanks a lot!  Will give it a try tomorrow 🙂

[toplakd]

Forgot to add this picture from Localization/Taxes,this is where each tax is setup so you can later use them in Tax Rules

 

 

 

[oliiix]

Thank you @toplakd it works perfectly now! About a problem I came across that you, Thirtybees might be interested in providing options for at some time in case it's useful for multiple people and not only me 😉:

There's always the possibility to provide a "pay on pickup" payment and shipping option. It would be great if the local VAT could be used for this even if ordered from a country that would have it's own vats normally. Maybe it would even be useful if this behavior would be a global option in TB Admin somewhere called "enable pay and pickup in store" (which automatically adds the pay on pickup shipping and payment options to frontend. This way payment wouldn't be setup through the custom payment methods module and represent a single payment option as a whole. And this way a new tax rule could include this as an option. Meaning you could setup one tax rule for payments made via pay-on-pickup and one tax rule for same country that is for the rest of the payment and shipping options. Just a rough idea, you don't have to reply to this so this thread doesn't get unnecessary longer with this side story 😉

[30knees]

What tools do you all use to get an overview of the VAT sums per VAT rate per Member State for the tax reporting? I'm struggling with that right now.

I'm hoping Prestools will be able to do this:

 

[datakick]

2 minutes ago, 30knees said:

What tools do you all use to get an overview of the VAT sums per VAT rate per Member State for the tax reporting? I'm struggling with that right now.

DataKick module to export transactional/order detail data into CSV, and then pivot table in excel to summarize the information

[Smile]

In our case all invoices are send to bookkeeping software and that bookkeeping software makes the declaration with government agency.

[30knees]

17 minutes ago, datakick said:

DataKick module to export transactional/order detail data into CSV, and then pivot table in excel to summarize the information

Thank you! I'm not succeeding with that, either, though. I'm not succeeding in getting the tax rate breakdown.

This is what I have right now:

and

What am I missing?

[Mediacom87]

Hi,

I didn't translate this article, but you should be able to do it.

I explain my technique, which is to apply from the first Euro the taxes of the destination countries, as I have implemented for my dematerialized products several years ago.

This technique avoids the headache of tracking values and the risk of forgetting.

https://www.mediacom87.fr/en/july-1st-2021-how-to-manage-the-vat-threshold-of-10-000eu-on-prestashop-or-thirty-bees/

Edited August 23, 2022 by Mediacom87
I have just made the translation of my article

[toplakd]

Since I have to issue all the invoices from the real bookkeeping software, I transfer all the orders into that software, which than makes all things that are needed to comply 🙂

[30knees]

4 hours ago, Mediacom87 said:

Hi,

I didn't translate this article, but you should be able to do it.

I explain my technique, which is to apply from the first Euro the taxes of the destination countries as I have implemented for my dematerialized products several years ago.

This technique avoids the headache of tracking values and the risk of forgetting.

https://www.mediacom87.fr/1er-juillet-2021-comment-gerer-le-seuil-de-tva-de-10-000eu-sur-prestashop/

Thanks! If I understand the translation, you have a module that isn't available but that you might be willing to make available? This is the translation (note: I saw the shop setup requirements and I believe my tb is properly configured):

 

Quote

 

To know my sales I developed a module which automatically lists me what I have to declare every quarter, this module is not developed to be marketed but if I have requests I could make it a real module usable by all the world.

 

 

[Mediacom87]

15 hours ago, 30knees said:

Thanks! If I understand the translation, you have a module that isn't available but that you might be willing to make available? This is the translation (note: I saw the shop setup requirements and I believe my tb is properly configured):

 

 

The module I am talking about has nothing to do with the management of taxes to be implemented, just a module to export the amounts of VAT to be declared every quarter.

This module, I just finished it, I integrated it to a module of management of the Taxes with the intra-community VAT numbers, but I did not put it on sale yet.

[Smile]

19 minutes ago, Mediacom87 said:

The module I am talking about has nothing to do with the management of taxes to be implemented, just a module to export the amounts of VAT to be declared every quarter.

This module, I just finished it, I integrated it to a module of management of the Taxes with the intra-community VAT numbers, but I did not put it on sale yet.

I think there is a market for it. I don't need it myself but very nice product I guess. Hope you post it soon.

[30knees]

@Mediacom87Understood. But without your module your post isn't very helpful for someone who is looking to export the amounts of VAT. :) 

Then I guess it's back to @datakickto hopefully help with his module, which I already have (see above), if @Mediacom87isn't selling his module (yet).

Edited August 18, 2022 by 30knees

[datakick]

6 minutes ago, 30knees said:

@Mediacom87Understood. But without your module your post isn't very helpful for someone who is looking to export the amounts of VAT. 🙂

Then I guess it's back to @datakickto hopefully help with his module, which I already have (see above), if @Mediacom87isn't selling his module (yet).

In DataKick module you can create list based on order details, and for each line calculate used tax rate (unit price with tax - unit price without tax). Then you can join-in other collections, like order / delivery address to figure out country code. That is enough information to export to excel, and there generate pivot table with summarized information per country+vat rate

[Mediacom87]

On 6/19/2021 at 1:39 PM, 30knees said:

Deadline: July 1, 2021

See: https://ec.europa.eu/taxation_customs/business/vat/online-sellers_en

In brief, if you sell more than 10k Euro net within the EU excluding your home country, each product has to have the destination country's VAT rate.

Has anyone implemented this yet?

I see how to give each country one or multiple tax rates, but I don't see how to assign each product a specific tax rate based on the country it's being shipped to.

For example, if I sell widgets and food to Austria from Germany, I'll need to have Austria's reduced tax rate for food products and their regular tax rate for widgets. And this for every EU country. 

What am I missing? 

I was just responding to your initial request, which was how to set up the VAT system by country.

I apologize if you only focused on the history of the VAT export module which was not the initial subject of my intervention.

But it is true that all the explanation of the implementation had been done in 2015 on this article, maybe I should have shared this one.

Otherwise my module is normally finished, I have to finalize the tests on the different versions to validate the functioning and I will of course propose it as I did for my Brexit management module.

Normally, I should do this in the next week if I find the time to make all the demos, all the presentation texts, all the screenshots, because it takes as much time as developing the module.