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UK software sold to EU (VAT registered & not VAT registered) and non EU countried


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Hi,

I am trying to see how I can set up to sell a product to EU & non-EU countries showing the correct VAT (if any amount). Lots of threads sort of cover this but often refer to older versions,

 

I am using Prestashop Cloud 1.6.1.1

 

Company is UK based and the product is set up to use the UK VAT tax rule set to 20%

Thresholds are nowhere near reached as yet and so I do not have to register for VAT in any other country.

I have been told that the rules are:

 

1. If EU (non UK) but no VAT number then tax is at UK rate : Tax=20%

2. If EU (non UK) and valid VAT number then tax is "Outside the scope of VAT" : Tax=0%

3. if non EU then tax is "Outside the scope of VAT": Tax=0%

 

split advice on UK companies

Option 1. Just charge VAT, let the customer claim it back

Option 2. If customer is VAT registered then you can not charge VAT as it will be neutral with neither side as VAT IN=VAT OUT.

I'm going for Option 1 at this point.

 

A) In Preferences->Customer I have set up "Enable B2B mode"

B) I am using Prestashop address in France to test that the tax is being picked up. When creating a customer the address form allows me to enter the Company SIRET and APE but not the VAT number. The Backoffice allows me to store the VAT number.

c) Product price is set to UK standard rate Tax Rule (I presume this is not correct)

 

So:

1. How do I tell Prestashop to allow the entry of a VAT number when a) creating a new account and B) when editing account details.

2. How are the rules set up? (I presume you cascade them in some way dependent upon customer address)

 

Regards

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You forgot that you are selling software (digitised goods delivered online ... are supplies of services for VAT purposes)

http://www.revenue.ie/en/tax/vat/guide/supply-of-services.html

 

1) Install the European VAT number module and set the UK as your own country.

2) Use "European VAT for virtual products" tax rule for all services (software) and "UK Standard Rate" for other goods.

Edited by tuk66 (see edit history)

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Thank you for that. 

 

Not all products will be virtual.

The VAT number module has been installed but the installation does not have the "European VAT for virtual products" tax rule

 

I have got it working (at least so it seams) but as I mentioned I have enabled "B2B". 

 

After a web refresh and cache removal (or maybe when changing other options) the VAT Number option appears when data is entered into the Company name field.

 

All things appear to be triggered!

Edited by golftell (see edit history)

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