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• You should not use a VAT group. That is only if products have different VAT than default country VAT. I.e. for foods in many countries.
• All countries, except Romania, should have country VAT set to 0%
• In advanced configuration, Prices, you should set the "Use alt. delivery country when calculating VAT" - this will use the order delivery country to calculate VAT and this is what you want
  • Then the delivery country on the user should be set on the cart/order when created

BR Nicolai

Hi Nicolai,

Understood. I was expecting to have a connection between Billing country and VAT rather than Delivery country and VAT. That's why I have completely ignored that option. But I understand why it should be set like this.

In this case, should I use System VAT instead of the VAT group? Or ignore System VAT altogether?

Thank you,

Adrian

VAT rules in EU is that the delivery country makes the decission.

But if you do not set "Use alt. delivery country when calculating VAT" then billing country will be used - billing on the order that is.

It is to avoid that I create a user in Cameroun and get it send to Denmark.

You should not use system vat at all. System VAT = 0 and prices in db without vat. And then only country VAT. Exactly like you normally would - but just changing country vat to 0 for those countries.

But be careful here - EU vat regulation since this summer is not like this. You have to collect the respective country VAT when trading B2C at very low revenue numbers in each country - B2B you have to use reverse VAT charge:

If you cannot sleep tonight: https://ec.europa.eu/taxation_customs/business/vat/vat-e-commerce_en#:~:text=From%201%20July%202021%2C%20the,e%2Dcommerce%20activities%20will%20change.&text=The%20VAT%20exemption%20at%20importation,now%20be%20subject%20to%20VAT.

Hi Nicolai,

Thank you very much.

I will keep that in mind and advise the customer.

Thank you,
Adrian

Nicolai,

I am trying to set up a Rapido solution where the Deliery adress should determine the VAT. 

You write: 

"Then the delivery country on the user should be set on the cart/order when created"

I'm not sure a follow. In the checkout the customer can choose between deliveryadresses. What I want to achieve is that if the customer chooses for example an adress in Poland the VAT should be set to 0. I have created the country Poland and set the VAT to 0. I have checked the "Use alt. delivery country when calculating VAT". But I still get VAT after choosing the Polish adress. The polish adress has "Billing / Shipping Country" set to "Poland".

What could be missing?

Regards / Aki

Can you share a URL so we can have a look?

What version of DW is this?

Of course, I have it set up on our staging site : http://nevotex.stage.mindflower.se/ running 9.15.4.

User with a polish adress : mtd@mathinic.se / test1234

Regards / Aki

@Nicolai, did by any chance have had time to look at the set up above?

Regards / Aki

Now I did - sorry about the delay!

The problem is that choosing the delivery address in the frontend, does not actually set the delivery address on the cart object.

So doing this:

The result is this:

There is no delivery country set. So when selecting the address, as a minimum you need to post back the delivery country so it gets set on the order.

If I change the address manually, the vat is applied:

Ah, OK, of course. 

Thanks for your help Nicolai. 

Regards / Aki

Given the above,. and this documentation: https://doc.dynamicweb.com/training/guides-videos/ecommerce/reverse-charge-for-vat#sideNavTitle1 should I read the docs as follows:

1. Reverse Charge for VAT on Country actually means "Allow Reverse Charge for VAT"

2. Reverse Charge for VAT on Web site actually means "Allow Reverse Charge for VAT"

3. Reverse Charge for VAT on User actually means "Apply Reverse Charge for VAT when web site and country allow it"

Is that a correct analysis? I.e. only when all three levels (including the user) have it set, reverse VAT is applied? So ultimately, it's the customer's checkbox that triggers the final behavior?

And if so, why is it that "Anonymous customers will not be charged VAT "?

Imar