PrestaShop Validate VAT in VIES and set 0% VAT

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.