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UE Vat Number module's problem

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Hi There,

I found a mistake in the logic of module "UE Vat number" in prestashop addons:

Prestashop calculates the taxes controlling only one address: or shipping address or billing address (you choose in setting). This is a problem In European Union:

Prestashop should control the VAT number in the billing address, and the country where you ship in the shipping address.

For Example I'm an italian shop, and I've this customer:

- billing address                                                  - shipping address

Name: .................                                                Name: ...........................

Surname: ................                                            Surname: .................................

Company name: ........................                       Company Name: ............ or NULL

Vat Number: IT12345678901                           VAT Number: NULL

address: ....                                                         Address: .................................

Country: Italy                                                     Country: Spain

In this case Vat tax should be 0%, but if I set billing address about tax rules I've 22% Italy's Vat, if I use shipping address I've 22% Because there's not VAT number....

 if I make the order in the backend I can force the shipping VAT number to have 0%, but my customer in the front ??? to resolve it I've modified a lot of core's files, it's possible to fix this rules?

Best regards,

Grassi Diego

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If you are in Italy, and your customer is an Italian business then you should be charging VAT. You would only charge 0% if the Spanish address has a SPANISH VAT number

 

That is my understanding

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Ok, you are right: my example was wrong, but there is a problem anyway:

1- IT VAT1 sells to IT VAT2 shipping to ES VAT3 : iva 0% (I''ve to set up in VAT rule only Shipping address)

2- IT VAT1 sells to IT VAT2 shipping to ES noVAT : iva IT 22% (I can set up in VAT rule Shipping address or billing address)

3- IT VAT1 sells to ES VAT2 shipping to ES VAT3 : iva 0% (I can set up in VAT rule Shipping address or billing address)

4- IT VAT1 sells to ES VAT2 shipping to ES noVAT : iva 0% (I''ve to set up in VAT rule only billing address)

The cases 1 and 4 are the problem.

Best regards,

Grassi Diego

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I am not a tax expert, but I think you may be over complicating it. 

Your customer is the company purchasing the items so you charge VAT. If they ask you to deliver to Spain, that is irrelevant. I think i was slighly wrong earlier. When saying you would need the Spanish VAT number. You don't. You would only not charge VAT if you were exporting outside the VAT for your customer

It is more complex because prestasop allows vat for shipping or billing address but customers do not always make things easy and will often only add a delivery address. 

I think sometimes it is impossible to be totally accurate with every tax rule combinations. All you can do is try your best and sometimes you need to make a manual adjustment

I would ask your tax accountant to ensure they agree with however you set it up to work in the majority of cases

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Yes, it's complicated, but my business consultant is sure that it's so (in European Union).

They are defined "triangulations". In my opinion prestashop's VAT rule has to control the VAT number in the billing address, the country defined in the shipping address and VAT number in the shipping address too. Now it's impossible, but prestashop has to control it: I want to start selling dropshipping, and it's very important the tax rule with resellers.

My previous examples would become:
1- IT VAT1 sells to IT VAT2 shipping to ES VAT3 : iva 0% (Prestashop controls VAT2 in billing address, controls VAT3 in shipping address (only if VAT2 is Italy), controls country in shipping address)

2- IT VAT1 sells to IT VAT2 shipping to ES noVAT : iva IT 22% (Prestashop controls VAT2 in billing address, controls VAT3 in shipping address (only if VAT2 is Italy), controls country in shipping address)

3- IT VAT1 sells to ES VAT2 shipping to ES VAT3 : iva 0% (Prestashop controls VAT2 in billing address, does't control VAT3 in shipping address (VAT2 is not Italy), controls country in shipping address)

4- IT VAT1 sells to ES VAT2 shipping to ES noVAT : iva 0% (Prestashop controls VAT2 in billing address, does't control VAT3 in shipping address (VAT2 is not Italy), controls country in shipping address)

If shipping address is not EU ALWAYS vat 0%.

If shipping address is Italy Always VAT 22%

 

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I still think your customer is the only one you need to think about. It is up to your customer to decide what to do between it and their customer

https://www.revenue.ie/en/vat/goods-and-services-to-and-from-abroad/intracommunity-supplies/what-is-triangulation.aspx

You only need to account for the VAT between you and your customer

Anyway I don't really know, and I know prestashop cannot do anything else. So perhaps talk to a company such as this: https://www.avalara.com/us/en/products/integrations/prestashop.html

 

 

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