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Lack of Interest Really need an option to display '+ VAT' next to the price

Discussion in 'Resource Manager Closed Suggestions' started by Stuart Wright, May 28, 2016.

  1. Stuart Wright

    Stuart Wright Well-Known Member

    Because we are VAT registered, we have to charge VAT on all sales to people located in the EU.
    The exact VAT rate depends on the country and is added by PayPal when making the payment at the PayPal site.
    So it is false to display the price as £30 when it is £30 + VAT.
    There is no way, however, to display the price + VAT in the resource manager.
    Brett Chitty and Freelancer like this.
  2. Pierce

    Pierce Well-Known Member

    I am in the same boat. I bought it and a month later asked about vat on a ticket and they set it up for me. Was very painless and very quick.
  3. Mr Lucky

    Mr Lucky Well-Known Member

    In fact (legally) you have to do this for digital downloads and services whether VAT registered or not.

  4. Pierce

    Pierce Well-Known Member

    I would ponder that geographically most purchases are non EU thus it's not a requirement for those customers.

    Also I thought vat was charged at the country rate. So I buy from UK as a consumer I pay UK vat, I buy from Germany at German rate and from Ireland at an Irish rate. I do not expect to see 23% vat buying from Germany which is only 19%!
  5. Mr Lucky

    Mr Lucky Well-Known Member

    For physical products the seller charges VAT at the rate of his/her location. For digital sales the VAT is applied at the country of the purchaser, not that of the seller.

    EU law since January 2015. :(
  6. Stuart Wright

    Stuart Wright Well-Known Member

    Who did what for you?
  7. Pierce

    Pierce Well-Known Member

    Am I so glad I don't sell stuff?!

    Sorry, my bad, you are selling I though you were buying the software. Again, oops.
  8. Stuart Wright

    Stuart Wright Well-Known Member

    It's the reason we haven't sold anything online until now.
    I'm surprised the Xenforo guys haven't addressed these digital download sales issues more pro-actively.
    HWS likes this.
  9. Mr Lucky

    Mr Lucky Well-Known Member

    I find it odd also.

    When you set up VAT in Paypal, does it actually discriminate between physical and digital sales? last time i spoke to them about EU VAT on digitalsa les they knew nothing.

    On my wordpress site I have it working well via Woocommerce and Taxamo plugin which automatically adds VAT per country at the cart stage, no need to faff with Paypal
  10. Stuart Wright

    Stuart Wright Well-Known Member

    There will be an online resource somewhere that keeps the latest vat rates and which, I'm sure, can be used to update vat rates for EU countries on a daily basis. Rather than do it manually on PayPal. Paypal ought to have a service for doing it automatically.

    Something else I haven't figured out, yet, is what country people are purchasing from using Paypal. I haven't been able to find that information, and HMRC need to know how much VAT you have collected for each country. So it had better be available in some Paypal report somewhere or we're going to be in trouble.

    If you want to calculate the vat before checking out, the hard part is determining the purchaser's country. You can't rely on their IP to determine their location. So many people use proxies these days.
    But Paypal gets account holders' countries as part of their account details, so it's reliable.
    If you want to do all the calculating before it goes to PayPal, I guess what you could do is, before the shopping cart is purchased, make sure people have entered their country, maybe with the default being set based on their IP.
    Then use the auto vat data service that must exist somewhere to calculate VAT on their purchase before it goes to Paypal.
  11. Pierce

    Pierce Well-Known Member

    I've just read up on this, not only do you charge each country at their rate you have to submit that vat to each country.

    That is a brutal amount of paperwork for a small to medium company to deal with.

    This is the most bizarre set of rules ever.

    Can you send the member a card which you charge for as the product with whatever online service as benefit?
  12. Mr Lucky

    Mr Lucky Well-Known Member

    It is not that bad, in the UK you do it via VAT MOSS.
  13. Mouth

    Mouth Well-Known Member

    Change the price phase text from "Price" to "Price (ex VAT, it will be added by PayPal)" ??
  14. Sadik B

    Sadik B Well-Known Member

    Hi Stuart,

    There's https://euvatrates.com and vatlayer. -> https://vatlayer.com/ Their api can give you the correct rate any time.

    Determining a user's country is fraught with risk as you always have a chance of error. The IP based method which was good some years ago, is very unreliable now. If you want to show the user the exact amount of VAT they will be paying before they make the purchase in Paypal, you cannot rely on paypal because until the user has given you authorization, you will not be able to query the API for their details. And user sees the price on the left when they land on paypal with the login screen, where you would want to show the tax as well.

    The only good option is that when people click on the Buy Now button, you ask them for their country, and internally you query the EU Vat rate and send the tax line item along with the price when they land on Paypal. This is possible with Paypal's express checkout api. And your buy now button can say, price ex vat. Vat will be added for EU. I will be integrating this process in my addon pember after the current version is out.
    Brett Chitty likes this.

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