Tax rules, country, EU, rest of the world

[srenkema]

My understanding of the WHMCS tax-setup options are:

 

- I can create a per country tax-rule

- I can have users specify their VAT number in the order form

- I can tax exempt a user manually

 

What I need is a system that automatically taxes 19% VAT for all clients based in the Netherlands, taxes 19% VAT to all clients based in the EU member states except when they entered a valid VAT number in the order form, and do not tax any clients based in other countries than the before-mentioned.

 

Is there any script to automate this? Anyone experience implementing this setup without having to create a tax rule for every country in the world.... ?!

 

 

That would be really great to know!

[Detailservice]

This is excactly what I need as well... We have a 25% sales tax in Denmark, which I must charge EVERY user from EU - unless they provide a VAT number. In case they do, I want to be able to automatically deduct the tax.

 

I have set up 25% tax for each of the 27 countries in the European Union, but I can't see how I can automatically deduct the tax if users enter a VAT number.

[scurrell]

Then you get into the problems of having to validate VAT numbers. I could just sign-up with you, enter any VAT number I can find on the web, and automatically save myself some money.

[Detailservice]

Yes and no. My hosting accounts will only get setup after admin approval - so our staff will always be able the check the VAT number before activating the users account.

 

So the problem of removing VAT at the time of the initial order - for those who qualify - is still relevant.

[ServWise.com]

I will be implementing this once I purchase version 4 of WHMCS, I already have this system implemented very well in AWBS and can see how it can be implemented in WHMCS. In AWBS I have build an AJAX script that checks users VAT numbers with the EUROPA site (http://ec.europa.eu/taxation_customs/vies/vieshome.do?selectedLanguage=EN) via their web service at the time of registration/detail change and only validated VAT numbers are stored in the system.

 

There is practically no way you can validate if a VAT number applies to an actual business and in all honesty I don't really care as long as it is valid and from the same country as the business, at the end of the day I have done as much as I can to check so I'm happy with that.

 

If / when I implement this I may be persuaded to share my code.

[dreas]

Awesome! I think this is a very essential feature for the European business market so I am assuming Matt would immediately implement it when you can provide him the code. The main advantage for you would then be that the code is automatically added with feature updates Is that enough motivation?

[srenkema]

Well, for the time being I though I would just setup tax rules, can anyone though explain me the difference between level 1 and level 2 tax rules?!

[rainboy]

We simply added all european countries to the tax database, and request 19% VAT on it, if a customer provides us with a valid TAX ID we will disable tax for them on their account. So in the worst case the customer pays a one time tax fee (which is allowed). If the customer really does not want it we simply resend them an invoice with the correct change.

 

Simply checking at the above url will not help, it only shows if the VAT ID is valid; not if it belongs to the person they say they are.

[Matt]

The procedure rainboy has posted is exactly the way it was intended to be used when being developed. Although in V4 we are including a sample action hook for validating a VAT Number a user enters during signup.

 

Well, for the time being I though I would just setup tax rules, can anyone though explain me the difference between level 1 and level 2 tax rules?!

In most cases you would only need 1 level, but there are regions where more than 1 tax needs to be applied, for example a state and country tax so there needs to be 2 different sets of rules.

 

Matt

[othellotech]

There is practically no way you can validate if a VAT number applies to an actual business and in all honesty I don't really care as long as it is valid and from the same country as the business, at the end of the day I have done as much as I can to check so I'm happy with that.

 

Its a pity UK HMCR dont agree with your interpretation of what you should be doing to check VAT details then ...

 

Just having a valid VAT number is *NOT* enough to make you exempt from a fine and paying the VAT your self you didnt charge - you have to show you took "all reasonable steps" to ensure the validity of the data - which includes checking the company/name/address on the europa check is the same as your clients, asking for a copy of the vat certificate to be faxed (where there are discrepancies) etc, and if in *any* doubt, charge the VAT anyway ...

[Detailservice]

Although in V4 we are including a sample action hook for validating a VAT Number a user enters during signup.

 

Thanks Matt! That's one more reason to look forward to V4 with great anticipation!