EU VAT Add-On

  1. Introduction
  2. System Requirements
  3. Set Up a Form
  4. Notes

Introduction

So useful if you want to automatically charges the correct EU and UK tax rates based on the user’s location, while reverse charging B2B sales.

Charges the correct VAT

Charges the correct VAT on sales to each EU country plus the UK

Validates VAT numbers

Validates and stores customers’ VAT numbers

Removes and reverse-charges VAT on B2B sales

Automatically make tax-exempt those users in an EU country who supply a valid VAT Number

System Requirements

  • PHP SOAP Extension - The PHP SOAP extension is required to communicate with VIES, the Vat Number Validation service of the European Commission.

Note: EUROPA, the service through which VAT numbers are validated, may not accept connections on IPv6.

Set Up a Form

To set up the EU VAT validation in a form, you must perform the following steps:

  1. Go to the Add-ons Manager and click on EU VAT.
  2. Click on the Set Up a Form button.
  3. A form used to configure the validation will appear.
    • Name: Configuration name for administrative purpose.
    • Form: Select the form to validate.
    • Status: Can be:
      • On: Enable validation
      • Off: Disable validation
    • Conditions: Set Up a condition to validate the form when it's submitted
    • Business Country: Select your own country
    • IP Based Country: If this option is enabled, the Country field (Select List) will be automatically populated with the user's country.
    • Field Mapping: It's composed of:
      • Country: Choose the Country field. We suggest using a Select List (Dropdown menu).
      • VAT Tax Rate: Choose the Tax-Rate field. The system will populate this field automatically based in the selected country (Country field).
      • Validate VAT Number: The VAT Number field to be validated. If the VAT number is empty or not valid, we will calculate the tax.
  4. Click Create

Notes

  • When the user selects his Country, the tax rate will be displayed in the VAT Tax Rate field.
  • If the VAT number field is empty or not valid, you should consider as a transaction with a natural person and always calculate the tax.
  • If the VAT number provided is valid, you should consider the transaction as a business transaction. In this case, you should only calculate the tax when the user lives in the same country as your business country.
  • To calculate a Total Cost, you can use conditional rules, for example: Total Cost = Sub-Total * VAT Tax Rate + Sub-Total
  • Country field values should be two-letter country codes, for example you can use: 
Italy|IT
France|FR