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30knees

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

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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? 

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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.

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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.

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Posted (edited)

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 by haylau
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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

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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. 

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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.

 

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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...

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