Guest chris121 Posted December 12, 2011 Share Posted December 12, 2011 Hi, we are vat registered and sell alot to EU and outside the EU we are in the UK problem, is that, if we sell item to UK, then vat is charged as standard If we sell an item to EU, to a normal person, we have to charge vat If we sell an item to the EU to a business and they supply a vat number, we have to remove the VAT off the price for them before they pay if we sell an item outside the eu, we don't charge the buyer vat whether personal or business purchase Is there any option for cubecart to work this out in the checkout (Eg remove the vat automatially if the shipping address is outside the EU) or have cuebcart remove the vat if the buyer clicks a box and enters a vat number or someting any help wouldbe apreciated Quote Link to comment Share on other sites More sharing options...
Guest Posted January 5, 2012 Share Posted January 5, 2012 In short, yes... Now, the long version... I'm VAT registered too, and this took some working out... VAT in Cubecart is ok, apart from the display of product prices... as a retail store I did not want to display prices excluding VAT, and then have VAT added to both the product and the postage at the checkout... no use the customer having a suprise at the checkout when a whole heap of VAT gets added to the price they've been looking at and set in their mind as acceptable for the goods they've been eyeing up... My solution was to use a third-party developer's modification to be able to show the product prices with or without VAT, now, the rules of this forum dictate that I can not mention the mod or the developer, that all has to be done over at the "other forum", but I'm not the developer, I don't benefit from advertising for them, so I think within the rules I can just say to have a look at my website to see how it all works - http://www.bits4vits.co.uk - and you might just spot a link on the left hand menu bar Ok, so let's see how I succesfully manage VAT on my store - 1) VAT Pricing on Products Ok, so we need to setup each product as follows - The "Normal Price" (I have an RRP mod loaded too, yours will just say Price if I remember correctly) needs to be the price ex-VAT And the "Prices Include Tax" tickbox needs to be unticked. Lastly, the "Tax Class" needs to reflect the VAT status of the product, so in this case this is a VATable product, so the price will be £70 +20% VAT = £84 for UK and EU customers (I'll explain EU businesses later), and £70 for the rest of the world as they do not pay VAT, but will obviously pay local taxes when the product lands and goes through their local customs... 2) VAT Settings In the Store Config / General Settings , you'll find this bit - We need to set the "Add Sales Tax to customers who qualify?" to "Yes" And the "How to tax customer" to "Calculate Tax on Delivery Address" (as it's the delivery address that affects the charging of VAT, or not) 3) VAT on Shipping On your shipping methods you have to setup whether VAT is to be charged on shipping... this works for me as 99% of my products are VATable... if you have a mixture of VATable and Zero rated products you'll have a quandery here, as it's a Yes/No question. According to HMRC's rules if you sell a VATable product the shipping / handling / packaging charge also attracts VAT, but if a customer just ordered Zero rated products and you have the shipping set to VATable, you may have a problem... But, as I said, it works for me, as "all" of my products are VATable... 4) VAT Setup for Countries In the Store Config / Taxes - We setup all the EU countries that will be charged VAT (There's a list on HMRC's website) - note old screen image shows 17.5% VAT 5) The Way VAT "works" in CubeCart So, now we've done the above, in a standard CubeCart installation, the prices would show ex-VAT on the category and products listings, and then when the customer enters the checkout the product price(s) and shipping will be displayed with the amount of VAT that will be added too. Hence why I use the mod to display the prices with VAT upfront on the category and product pages... 6) EU VAT Registered Customers As in your original post above, I sell to EU VAT registered customers too, so what I do - a complete workaround! - is that when I am approached by a customer and asked if I can supply them ex-VAT, I say "Yes, as long as you provide me with a VAT number upfront as I have to account for all such transactions on a VAT EU List which gets passed to HMRC on my quarterly returns", this will weed out the genuine trade buyers and frighten off those that are buying personal products through their company, or they'll just be making a number up (how are you to know? apart from the format listing on HMRC's website), etc... When I've "approved" them, I then simply change their country from, say, "France" to "France-Business" (you have to set up a new country to do this) then that effectively takes them out of the EU list of countries we setup above, and so they don't get charged VAT! Remember to setup this new country in your shipping arrays too... 7) Channel Islands Customers ?!?! Weird one this... due to the Channel Islands input into the war effort (apparently!) they were rewarded with a zero-VAT status! So I've set up a couple of countries to cover this "Guernsey" and "Jersey" and that, as above (6) that takes them out of the VAT area too, so they don't pay VAT either... Again, remember to setup these new countries in your shipping arrays too... 8) Rest of the World The rest of the world, i.e. those outside the UK and EU, don't get charged VAT as they don't fall in the array of EU countries we setup above in (4). And if they are viewing my site they'd be able to see prices ex-VAT using the switch to the right of my menu structure, or on a standard installation they'd see the prices ex-VAT anyway. ====================================================================================== I did it this way, as I didn't want VAT being added to products and shipping charges just in the checkout, and customers being suprised by the lump being added on... It all depends on your ratio of UK / EU / RoW customers... As said, this works for me ... as "all" my products are VATable... have a wander round my store - http://www.bits4vits.co.uk - and put some items into a basket and then proceed to the checkout and you'll see how it all works... This information is all provided in good-faith for the benefit of others... but please test thouroughly first to see that this all fits in with the way YOU run YOUR businesses Dave Bits4Vits Quote Link to comment Share on other sites More sharing options...
Noodleman Posted May 2, 2013 Share Posted May 2, 2013 Morning All, I have released a mod which addresses this issue. It is a basic plugin that allows you to bypass tax rules for specified customers. It is available from my web-site, details can be found on the cubecartforums in the V5 commercial mods section. Noodle. Quote Link to comment Share on other sites More sharing options...
huggettm Posted April 30, 2014 Share Posted April 30, 2014 How do you set the postage part not to calculate VAT on VAT exempt items? Quote Link to comment Share on other sites More sharing options...
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