VAT rules and how it is determined someone is living somewhere

[mscholten]

Difficult to find the right location for this post. Mods please move it if needed.

 

How does WHMCS determine where someone is located? Based on new laws we need to decide the country the client is in based on at least 2 requirements that should not conflict with eachother. We can select them from (and decide per client what to follow) they are listed below:

- Invoice address (check 9.5.2 on the link given below)

- Bank details (not always possible)

- IP address

 

And possible:

- Client phone number

- Client mail address (if it has a relation with a fixed phone line, eg an ADSL provider)

 

Changes do not apply when the client is in the country where we are located (the Netherlands for us) or when it is a company in the EU with a valid VAT number (and the number is provided to us).

 

Full explanation is available on: http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/telecom/explanatory_notes_2015_en.pdf (see 7.4.2.4 and 9)

 

As far as I know this is a change effecting many WHMCS customers in Europe.

 

If you use the address given by the client you only have to check it when they change this. (Based on 9.5.1, point 2.) This means you only have to validate the country at that time and not every time an invoice is generated. Maybe the easiest option is to use the address combined with 9.5.1 point 6 (enforce to certify it with every address change/order).