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tax 0% for EU customers


Jan38

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hi all,

 

i have to setup products for several EU countries for which i have to setup the tax rate to 0%. The tax will be paid in the country of deliverance.

 

those are tax rules when i for instance export products (hosting etc) to other EU countries.

 

 

  • When i setup a new taxrule do i have to set it to level 1 of level 2?
  • when the customer is Dutch but the company is in France how does WHMCS check this because the tax rate must be 0% for that specific customer, does whmcs check this in the address fields of the client so the right taxrule is used?

 

 

i also want the customer to fill in their tax number (is there a possibility to automatic check if the taxnumer is valid and in use by the customer?) when registering for a service

 

how can i do this the right way?

Edited by Jan38
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@Brian: i did read about that tax EU invoicing add-on but i mentioned that many people wrote that it doesn't work is that true?

well we don't use it, so can't confirm either way... but I don't recall many threads about it not working - certainly none recently...

 

to answer your questions - when you do a new rule, you make it level 1.

I would imagine for your dutch/french customer, whmcs would go by whatever country was used in that client's profile.

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I would imagine for your dutch/french customer, whmcs would go by whatever country was used in that client's profile.

 

You mean the language that was used when accessing the site or the language that is based on the address of the customer: the customer is dutch but their business address is in France.

 

Do you know which variable is used to get the right tax rules?

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You mean the language that was used when accessing the site or the language that is based on the address of the customer: the customer is dutch but their business address is in France.

 

Do you know which variable is used to get the right tax rules?

logically, it should go by country (and state - for those that have state taxes too) of their business address - language should be irrelevant for tax purposes.

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is this on the email, the pdf invoice or both ?

 

if you've made this customer tax exempt, then they won't be charged tax and so there is no tax to add to the invoice; if they're not tax exempt and you're charging them 0% tax, then i'm not sure if the invoices show 0% tax amounts and the rates (I don't think so, but don't know for certain).

 

here's the appropriate text from the documentation...

 

http://docs.whmcs.com/Invoicing_Issues#Tax_Not_Applied_to_Invoices

 

Tax Not Applied to Invoices

 

If tax is not applied to an invoice this means WHMCS believe it is not eligible under your tax rules. First ensure tax is enabled and the relevant Apply Tax options are ticked on the Tax Rules page, if it's an invoice for a product ensure this option is ticked in the product configuration.

 

Secondly ensure the Tax Exempt checkbox is unticked on the client's Profile tab. This may have been ticked by a member of staff or our VAT Invoicing Addon Module (if installed).

 

Finally the client might not match any of your tax rules, the state/country must be an exact match and is case sensitive. So for example if a tax rule exists for the state "TX" and the client's state is "Texas" these do not match and therefore tax would not be applied. Therefore two tax rules would be required, one for "TX" and another for "Texas". Any changes will be applied to subsequent invoices, existing invoices will not be changed.

i'd be tempted to suggest setting up a test account on your whmcs installation, make sure it isn't tax exempt, configure a 1% tax rate and make a test order - if the tax rate appears on the invoice, change the rate to zero and do it again... that might be the quickest way to find out if it should be showing 0%

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i got the system running now, the only thing is that i (and the customer) don't see 0% tax on their invoice, normally it says tax ...% now it says nothing, is there something i can configure for this?

 

Well..since the invoice template has something like "if ($taxname) blahblah", you won't see it if set to zero

 

Simply remove that if statement from your invoice template...that should do the job for you

Edited by omnigenus
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that's a good suggestion, but if the customer was tax exempt, it would show the customer being charged tax at 0%... my recollection is that tax exempt is not the same (from a legal point of view) as charging at a zero rate... but i'll leave that for Jan to work out with regards to the EU! :)

 

if tax is set at 0%, then it just shows as 0% in the invoice with no tax name (VAT etc) next to it.

 

http://prntscr.com/2la3u3

 

another option might be to add one more if statement after $taxrate2...

 

if (!$taxname) $tblhtml .= '
<tr height="30" bgcolor="#efefef" style="font-weight:bold;">
<td align="right">'.$taxrate.'% VAT'</td>
<td align="center">'.$tax.'</td>
</tr>';

which is only used when $taxrate doesn't exist - technically you should probably use an ELSE on the previous IF statement, but this would work... it hard codes the VAT text after the % (use whatever your taxname is).

 

though this wouldn't solve the tax exempt issue (if it is one!) as I don't think you can get the tax-exempt status in the email or pdf templates (except perhaps by querying the db), so it wouldn't be straightforward to tweak this method in the template for those that are tax exempt.

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Depends on what he wants to do...

 

I personally have one level 1 taxrule for all countries and it's the VAT for my country...but i have a hook that checks VAT for EU countries and makes an exemption...anyway...VAT name is always displayed on my invoices and i always show reverse charges info for our EU customers.

 

for example:

SUB TOTAL 1.000

VAT (0%) 0.00

TOTAL 1.000

 

Note: Reverse Charge blah blah

 

Forgot to tell that i use the $taxname set in the language files and that's important to say, because you can't show the taxname if there isn't one :)

Edited by omnigenus
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