Let me first apologise if a solution have been posted somewhere else on this forum but I have been searching for what seemed like eternity without luck: hence this post.
I am all new to Prestashop and ecommerce generally, so please bear with me.
I am running Prestashop version 126.96.36.199 and my store is UK based and I have had VAT setup using the standard UK VAT rate at 20%. I have also set Tax Option to display tax Based on: Delivery address.
Normally, what should happen with the above settings is (correct me if I am wrong), when a customer selects a delivery address that is outside the EU, there should be no VAT charged even if the customer have a UK (or EU) invoice/ Billing address or is physically located within the UK or EU (meaning the IP Address is in the UK or EU as the case may be).
However, in my case, No matter what delivery address (country) I or the customer enters in the front office, VAT is still charged. The only time VAT is not charged is when the customer is physically out side the EU. But there is a problem even with that because when the customer is outside the EU and selects a delivery address within the UK or EU, no VAT is charged.
I know this all sounds confusing so I've summarised the problem as follows:
- If both Invoice and Delivery address is within the EU.....Then = Charge VAT
- If Invoice address is Outside the EU but Delivery address within EU.....Then = Charge VAT
- If Invoice address is within the EU but Delivery address outside EU.....Then = Don't charge VAT
- If both Invoice and Delivery address are outside the EU.....Then = Don't Charge VAT
When Customer Physically outside the EU:
- Both Invoice and Delivery address are outside the EU..... = No VAT is Charged (This is Ok)
- Both Invoice and Delivery address are within the EU..... = No VAT is Charged (This is Wrong)
- Invoice address is outside the EU but Delivery address within EU.....= No VAT Charged (This is Wrong)
When Customer is physically inside the EU
- Invoice address is within the EU but Delivery address outside EU.....= VAT Charged (This is Wrong)
- Invoice address is Outside the EU but Delivery address is within EU.....= VAT Charged (This is OK)
In a nutshell, it looks like my store is ignoring the "Tax Based on: Delivery address" option that I have selected and seems to be operating by the IP Address (physical location) of the customer's computer.
Sorry about the confusing nature of my post.
Any suggestions will be appreciated. Thank you all in advance.