The plugin enables VAT number validation and applies European VAT rules in a friendly way. It also supports the new EU VAT rules for digital goods sellers
Just install the plugin and enable it. VAT is calculated based on the customer's address and VAT number
Rules for selling physical goods:
- Home country's residents & businesses are charged VAT (Home country's rate. That is, the rate defined by you in the Tax Profile)
- EU residents & businesses with no valid VAT number will be charged VAT (Home country's rate, That is, the rate defined by you in the Tax Profile)
- EU (Non Home country) and with a valid VAT number are charged 0% VAT
- Non EU residents & businesses are charged 0% VAT
Rules for selling digital goods:
– if the company sells to any countries in the EU, they will have to charge VAT in the country of the buyer instead of the seller.
– if the buyer of the digital goods is an individual, the company has to charge the VAT percentage from the country of the buyer
– if the buyer of the digital goods is a company (with a valid VAT number), there is a 0 percent VAT charge.
– if the buyer of the digital goods is a company without a VAT number or has an incorrect VAT number, then VAT of the country of the buyer must be charged.
– if the company sells digital goods to companies or individuals in their own country, local VAT needs to be charged.
The VAT numbers are validated against the official EU VIES database.
NOTE: You will need K2Store 3.8.x for this plugin to work.
- Since we check VIES database in real time, there might be some delays while proceeding to the order summary step of the Checkout