This module gives possibility to validate company VAT number in VIES system. Then - depending on validation result - apply a 0% tax for company that uses this VAT number (if this company register address is in country different than merchant country). Reverse charge VAT will be applicable only for companies with valid VAT numbers.
As you already know - this module gives possibility to validate customer's VAT number in VIES service provided by european union. If VAT number will be valid - the company that uses it will be a subject of reverse charge of tax. According to fiscal law, the “reverse charge” process stands for the process of ascribing tax liability to the buyer – to be more specific, the VAT liability. In practice, this means that the buyer settles VAT-related costs directly with the revenue office in country where the company is registered.
VAT tax in european union
European Union changed VAT tax rules that affects e-commerce business if you're from european union. These VAT rules affects also third-party businesses that operates from third-party countries out of European Union. It is just enough to sell for customers from european union even if you're out of europe. Simply saying - From 1 July 2021 we have new VAT (value added tax) rules on cross-border business-to-consumer (B2C) e-commerce activities in the European Union. These changes requires to sell products with tax rate from country where your customer lives. If your customer will be a business (company from european union) you will need to set vat TAX rate to 0%. And this is the module that will fulfill these needs.
What is the module workflow?
Our addon gives possibillity to validate VAT in two ways. First validation process is available for unlogged users. You can activate heading bar or special bar on product page where customer can click on button to "provide VAT number". This button, once pressed, will spawn popup window with form to validate VAT. After submit - our addon will check if provided VAT number is valid in european union VIES service. If number will be valid - tax rates will be changed to 0% (so customer with this VAT can be a subject of reverse charge tax).
Second validation is available for logged customers. Module will check billing or invoice address (you can decide about it) address of logged customer. If there will be valid VAT number (validated with VIES) - this customer will be a subject of reverse charge VAT. So tax rates will be set to 0%. If customer will not use this VAT during checkout (as its billing invoice address) - the VAT will be switched to default one.
Please note that if customer will be logged - the only one VAT number that will be validated and used by module is a number that customer provide in their order details as a billing address.
4.56
Files manager and webp images support PrestaShop has files manager that gives possibility to upload images to img/cms/ directory. These pictures can be used to build product descriptions etc. How to add webp images support to this default files manager in PrestaShop ?
New Croatian law requries prices in two currencies Croatia switches currency to EUR. Because of this all on-line merchants requires to show prices in two currencies - Croatian Kuna and in Euros. How to achieve this in PrestaShop?
Brand on list of purchased products This guide shows how to add brand (manufacturer) name of product to list of purchased products on order details page in PrestaShop 1.7
VAT tax changes and PrestaShop Check how to deal with new VAT tax rules in European Union b2c transactions. Is PrestaShop ready for these changes?
