User upgrades and new EU VAT regulation re: digital services

[Mr Lucky]

https://www.itduzzit.com/connect/wordpress-to-freeagent
https://zapier.com/app/explore?services=wordpress,freeagent

If you do sign up to FreeAgent, please consider using my referral link (which includes a 10% discount too):
http://fre.ag/43uvpbul

Thanks, I will certainly use your link if I do.

I need first to see how those work with Woocommerce

 

[ReneHermi]

@Jon W Would be great if your add-on also gives the possibility to export a csv containing necessary fields like IP, Address, country code etc. This makes it universally applicable to other invoicing systems as well.

 

[Bram]

It's tax paying time again and I was wondering how you guys have handled this administrative nightmare. I am clueless to be honest.

 

[Jon W]

Just released an update to User Upgrades by Waindigo that makes it much easier to manage EU VAT compliance:

New features:

• Added ability to view, search and export a detailed transaction log with customisable fields. This makes it really easy to identify specific transactions (e.g. for compliance with EU VAT rules). (Premium feature)
• Added ability to log a user's IP address when they purchase a user upgrade. This adds an alternative way of checking/recording a user's country (e.g., for compliance with EU VAT rules). (Premium feature)

I am currently using this on my own site to add the VAT after the transaction has taken place (i.e., everyone pays the same, regardless of location).

I am also developing a solution that integrates directly into FreeAgent (affiliate link, includes 10% discount), which I will be releasing soon.

 

[Jon W]

Link to the update:
https://xenforo.com/community/resources/user-upgrades-by-waindigo.861/update?update=15058

 

[Jon W]

I've just released another update to User Upgrades by Waindigo that supports the PayPal feature to have multiple VAT rates.

https://xenforo.com/community/resources/user-upgrades-by-waindigo.861/update?update=15167

 

[Mr Lucky]

I've just released another update to User Upgrades by Waindigo that supports the PayPal feature to have multiple VAT rates.

User Upgrades by Waindigo

This is great! BUT, my problem is I also sell physical products. I'm not sure how paypal would deal with that. This is because I am below the UK threshold for charging VAT therefore should not charge VAT on physical products, but do need to charge VAT on digital downloads and services to the EU.

 

[Jon W]

This is great! BUT, my problem is I also sell physical products. I'm not sure how paypal would deal with that. This is because I am below the UK threshold for charging VAT therefore should not charge VAT on physical products, but do need to charge VAT on digital downloads and services to the EU.

You'd have to use two PayPal accounts. Not sure if they allow you to do that though. Might be worth giving PayPal a call.

 

[Mr Lucky]

You'd have to use two PayPal accounts. Not sure if they allow you to do that though. Might be worth giving PayPal a call.

OK I will try that.

I also want to know if it would affect donations though? I wouldn't want VAT to be applied to donations. Probably best to ask Paypal about that as well.

 

[Bram]

I also want to know if it would affect donations though?

If donations are just that: a free gift. You don't need to apply VAT.

However if you give anything in return for a donation such as a userupgrade, a banner or special forum permissions it's considered a digital product and VAT should be applied.

 

[Mr Lucky]

If donations are just that: a free gift. You don't need to apply VAT.

Yes, I am aware of that, but if I configure paypal for VAT, would it also apply VAT to donations? That is what worries me.

 

[sharpie20]

Hi guys, I became VAT compliant etc etc ... (Live in UK but thankfully most of my upgrades are purchased outside of the EU) the main issue I have is that my EU subscribers pay the rate for relevant upgrades plus VAT via Paypal but XenForo doesn't recognise the payment as a valid amount leaving me to chase them up for their usernames or worse have them post that they have paid and not been upgraded.

Is there a work around for this? Many thanks.

 

[Mr Lucky]

Hi guys, I became VAT compliant etc etc ... (Live in UK but thankfully most of my upgrades are purchased outside of the EU) the main issue I have is that my EU subscribers pay the rate for relevant upgrades plus VAT via Paypal but XenForo doesn't recognise the payment as a valid amount leaving me to chase them up for their usernames or worse have them post that they have paid and not been upgraded.

Is there a work around for this? Many thanks.

That shouldn't happen I would contact support