Is there a way to differentiate between tax types?

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  • December 15, 2022 at 6:24 pm #106168
    Andras
    Participant

    The EU VAT-number validator sets the VAT rate of the product to zero, as it should.
    But it also sets the VAT rate of the shipping to zero.

    Is there a way to keep the shipping VAT, while getting rid of the product VAT for B2B customers?

    Thank You!

    December 20, 2022 at 6:55 pm #106405
    WPWhale
    Moderator

    Hi Andras,

    I’m not sure what is the correct way of handling VAT in this case (from a legal perspective), but currently this is not an option in the plugin.

    Can you please send an official reference that explains this? If it goes with regulation, I will be happy to include it in the next update.

    Omar

    January 15, 2023 at 6:51 pm #107632
    Andras
    Participant

    Hi Omar,

    Thank you for your answer. I can’t show any official reference, but I’ll explain my situation.

    My webshop is based in an EU country. If someone makes a purchase from another EU country, I have to charge the VAT rate of that other country. If the customer is a business customer the VAT rate is of course 0 percent (except in the case of domestic business customers) – this is according to the OSS regulation.

    When I order the delivery for the purchased good, I have to pay taxes based on the domestic VAT-rate to the local subsidiary of the international shipping company – this is according to my shipping provider.

    So in my webshop at the checkout, I have two different VAT rates: a foreign VAT rate after the product, a domestic VAT rate after the shipping. When the customer enters an EU VAT number, both of those VAT rates are set to zero. But I’ll still have to pay the domestic VAT when I order the delivery. I would like to transfer this cost to the customer, even when he/she adds an EU VAT number.

    Thanks again,
    Andras

    January 17, 2023 at 8:24 am #107721
    WPWhale
    Moderator

    Hi Andras,

    Actually it’s the first time I get this case, the plugin is used on thousands of stores and none of them have mentioned something like this.

    I would suggest you ask a legal accountant who can provide sufficient info on how to deal with this, when you’re 100% sure of the way to be handled, I will be happy to make the customizations needed to meet your needs.

    Omar

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