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EU VAT - How It Works ?
NO VAT / NO Sales TAX - For USA Customers !
If Your Customer Is From EU (European Union ) And He Is Representing A Company (Has A Valid EU Intra Community Number), The VAT From His Order Will Be Automatically Removed.
How It Works?
We Take Into Consideration 2 Aspects.
1. Shop Location
2. Customer Location
*Note: If The Customer Is From The Same Country As The Shop VAT Will Be Applied In All Cases.
Verifying The Validity Of VAT Number:
There Are Several Checks Made.
If The Shop Is Not From The Same Country With The Customer, Here Is Where The Add-on Will Do The Job.
When A User Is Inserting His VAT Number, The Add-on Is Verifying If It Is Written Correctly: 2 Letters (Country Code) In The First Field, And Max 12 Characters In The Second Field.
In Case This Condition Is Passed, There Is A Second Check, This Number Is Sent And Validated On The Official EU VIES System Which Handles VAT Numbers In Real Time: http://ec.europa.eu/taxation_customs/vies/
If The VAT Number Is Valid, The Customer Can Purchase His Order With NO TAX / VAT .
We Created This Add-on Because Of The Headaches We Had Validating VAT Numbers Which Our Customers Provided. Also, There Was Always A Delay, Since The Customers Had To Send Us Mail Before Purchasing.
VAT Number Verification In VIES !
If Your Company VAT Number Is Valid, Your Order Is With NO TAX !
Our VAT Number: RO39306065 Registered In Romania ( European Union Country)
Verify Your VAT Number Now!
Here You Can Find A Webpage Application Where You Can Verify Your VAT Number : https://vatlayer.com/
Here Are Few Cases To Understand The Principle.
We Have The Following Variables.
a) Shop Location - Company
b) Customer As Individual
c) Customer As A Company
d) Customer's Location.
Case 1:
Shop Location: Germany (EU Country)
If The Customer Is From Germany, It Doesn’t Matter If He Is A Company Or Individual, He Will Pay VAT.
Case 2:
Shop Location: Germany (EU Country)
Customer Is An Individual From France (EU Country) - So He Has NO EU Intra Community Number
In This Case The Customer Will Pay VAT
Case 3:
Shop Location : Germany (EU Country)
The Customer Is A Company From France (EU Country) - Valid EU Intra Community Number
In This Case The Customer Will NOT Pay The VAT.
Case 4:
Shop Location : Germany (EU Country)
The Customer Is A Company From France (EU Country) - NO Valid EU Intra Community Number
In This Case The Customer Will PAY The VAT.
Case 5:
Shop Location : Germany (EU Country)
The Customer Is Outside EU / A NON European Union State, So It Doesn’t Matter If He Is A Company Or An Individual, He Will NOT Pay VAT.
This Is Considered Import/Export And It Is Subject To Other Taxes (Customs)
According To EU Laws, For VAT e-commerce FAQ Please Read This : http://ec.europa.eu/taxation_customs/taxation/vat/traders/e-commerce/article_1610_en.htm