New EU VAT and differences

[JPVV]

With the new rules, EU countries must sell using the VAT of the country of destination. This can be solved with the ZONE RATES module.

1- Create the general VAT type that affect your products ( normal / reduced / luxury ) in CLASS of TAX. This CLASS is the type that must be used in your product:


2- Create the TAX RATES that are the variations in % of that VAT in different zones:


3- Create the zones for all countries that are included in that % for that VAT CLASS:


4- Don't create zones for countries out of the EU, as ( if happens like in Spain ) the exportations out of EU are free of VAT. The VAT will be applied by the destination countries in their customs.

So far everything will work well. The system will automatically apply the VAT rate for each country. From here a problem explained by TORVISTA time ago:

A- INTRA-COMMUNITY VAT EXEMPTION ( FREE ) is ONLY APPLICABLE to CUSTOMERS that are BUSINESSES. ( Out of your own country ) and are registered in VIES with their EU TAX ID, and you have yours.

B- FOR ALL OTHERS, persons or companies that don't have the EU TAX ID, their TAX ID in their countries MUST BE ASKED AND SAVED to be printed in the invoices TOO.

The MOD that solves the EU TAX ID solves the EU TAX ID registered in VIES.

But we have to put in our invoices the TAX ID of ALL THE CASES. ( A and B )

summing up:

1- At this moment exportations out of EU can be stopped in customs or returned if we don't put the TAX ID of that person in his country in our invoices. This problem depends on the country of destination outside the EU.

2- The invoices to other countries of the EU must take the TAX ID of that person / company not covered for the TAX exemption.

3- The invoices to other countries of the EU must take the EU TAX ID of that company covered for the TAX exemption.

Then, the TAX ID ( registered or not in VIES ) must be asked and saved.

The EU TAX MODULE save the TAX ID if is not registered in VIES and use it in the invoices too ?

in other words, if the TAX ID is not registered in the VIES is recorded anyway ? Or it is rejected by not being registered and is blank ?

[torvista]

Just to clarify:
annual sales from an EU country to end-users in other EU countries <10,000€ use the VAT rate of the SELLING country and are declared/accounted for as per normal/in-country sales.
annual sales from an EU country to end-users in other EU countries >10,000€ use the VAT rate of the DESTINATION country, which is supposed to go to the destination country and can use the One Stop Shop VAT solution.

https://prestashop.com/blog/legal/va...july-1st-2021/

We do not exceed the 10,000€ limit and so that's as far as my knowledge goes.

[JPVV]

Unfortunately our beloved institutions, in order to appear to be doing something, have already made us so dizzy that we are lost.

I can tell you that according to I have confirmed with specialists of the sector, if you are autonomous ( natural person and not society ) you must sell in the VAT of the country of destination.

For companies, it’s like you say Torvista.

In any case with the mess of regulations, I think the basic thing is to maintain an open system that allows everyone to adapt it to any VAT, ( origin / destination ) and apply or not the exemption of intra-community VAT or not according to the cases.

[JPVV]

I must add new information with more rules.

Following the case of phisical persons and not companies, in the case of sells to other european country, is MANDATORY to add the personal ID of that person in his country.

Add to this, for exportations out of the EU, are more and more the cases of countries that force to inform in the customs border, the personal ID of the consignee.