I gather that uCommerce might handle VAT correctly for EU sales. Can you tell me if it handles VAT correctly for EU sales between VAT registered companies as well as for all the wierd (non ISO) country exceptions?
The correct handling of VAT in the EU (as I understand) it is as follows.
IF shopper country == Store country <!--Local Sale--> charge VAT ELSE IF shopper country == in EU <!--They are in the EU --> IF shopper == VAT registered and VAT No is valid <!--Shopper is a VAT registered company in a country that the Store country has a reciprocal VAT agreement with --> No VAT ELSE <!-- shopper is not VAT registered --> Charge VAT END IF ELSE <!-- shopper is in the Rest of the World --> No VAT END IF
The wierd VAT exception "non-countries" are:
Northern Cyprus
Büesingen
Heligoland
The Canary Islands
Ceuta
Melilla
The Channel Islands Alderney, Sark and Herm
Mount Athos
Livigno
Campione d'Italia
The Italian waters of Lake Lugano
There are of course other exceptions such as Jersey (JE), Guernsey (GG) and the Vatican (VA) which are in the ISO country list but handling these is trivial.
Not many shops I have come across handle these correctly.
It doesn't handle this out of the box, but there's an extension point called ITaxService, which is responsible for calculating VAT. You can override the default behavior to support the rules above. In fact we're doing it for our own store to comply with regulations.
Once you create your custom tax service implementation you need to register it with uCommerce in the /umbraco/ucommerce/configuration/components.config file.
VAT and EU sales
I gather that uCommerce might handle VAT correctly for EU sales. Can you tell me if it handles VAT correctly for EU sales between VAT registered companies as well as for all the wierd (non ISO) country exceptions?
The correct handling of VAT in the EU (as I understand) it is as follows.
IF shopper country == Store country <!--Local Sale-->
charge VAT
ELSE IF shopper country == in EU <!--They are in the EU -->
IF shopper == VAT registered and VAT No is valid <!--Shopper is a VAT registered company in a country that the Store country has a reciprocal VAT agreement with -->
No VAT
ELSE <!-- shopper is not VAT registered -->
Charge VAT
END IF
ELSE <!-- shopper is in the Rest of the World -->
No VAT
END IF
The wierd VAT exception "non-countries" are:
Northern Cyprus
Büesingen
Heligoland
The Canary Islands
Ceuta
Melilla
The Channel Islands Alderney, Sark and Herm
Mount Athos
Livigno
Campione d'Italia
The Italian waters of Lake Lugano
There are of course other exceptions such as Jersey (JE), Guernsey (GG) and the Vatican (VA) which are in the ISO country list but handling these is trivial.
Not many shops I have come across handle these correctly.
Thanks
William
Hi William,
It doesn't handle this out of the box, but there's an extension point called ITaxService, which is responsible for calculating VAT. You can override the default behavior to support the rules above. In fact we're doing it for our own store to comply with regulations.
Once you create your custom tax service implementation you need to register it with uCommerce in the /umbraco/ucommerce/configuration/components.config file.
Hope this helps.
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