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Eu Vat One Stop Shop Rate Topic   - - - - -

 
  • Flow
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Posted 22 June 2021 - 04:20 PM #1

As some of you might know, the way VAT works in the EU is going to completely change from July 1 2021 on. I just wrote this to cs-cart:

 

Hi, I am wondering if cs-cart plans to change their tax setup, so we can use it with the new EU regulations?
 
Basically, what we (and every other EU store needs), is:
1. Have products show INCL VAT on the front-end but have a final calculation at checkout clearly showing the netto and brutto pricing. Of course discounts always need to be taken off the total amount before tax is being calculated, because why should we pay tax over money people have not spent? 
 
2. This goes for most EU stores but it has to be a setting because not 100% of the stores will want this: Products have to cost the same on the front-end incl VAT, independent of the VAT percentage of the EU country. Meaning a product costs the same incl vat for a customer in Austria (with 21% VAT) as in Germany (with 19% VAT).
 
If a company however orders using a valid EU VAT number from another country, the VAT has to become 0%.
If an order from outside the EU comes in, the VAT also becomes 0% 
 
On the forum and bug tracker, there also have been numerous topics about this, every year, again and again. Like: https://forum.cs-car...tion-taxes-bug/
This alone should be reason for cs-cart to once and for all fix these calculations, but I am hoping the new regulations might motivate you to finally do this because from july 1 on, cs-cart is basically unusable in the entire EU.
 
Has anybody else thought about this? Any EU developers who might want to try and tackle this once and for all?

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  • gijoy
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Posted 22 June 2021 - 08:17 PM #2

It's really frustrating that the issue isn't fully appreciated. Therefor we decided to get this custom developed by Simtech Dev a while ago. This also greatly helps with charging 0% VAT for ICP customers. It were a decent number of hours charged and there are still parts where it's not fully integrated. I fully agree excl vat prices, but show including vat, should be default CS-Cart functionality.

 

We are setting up the one stop system by creating a rate area for each country. We integrated an API connection with Exact that can connect a rate-area to a VAT-code (not vat number). This will give us the data we need to correctly file our OSS-taxes.



 
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Posted 23 June 2021 - 09:32 AM #3

Thanks for your response. It's indeed very frustrating that cs-cart just ignores all the problems we have with tax/vat. They miss out on a lot of users from the EU this way.

 

My idea is also to set up a tax rate for each country... the problem is however the pricing will then also be different in each country and you'll get ugly prices (meaning less sales). So a product would be cheaper in Germany, than in the Netherlands, for example. Because VAT will be added to the base price.

 

So far I have "fixed" this issue with a promotion that is not visible for the customer. So if a customer from the Netherlands logs in, he will automatically get a small discount to make up for the extra VAT.

 

IMO the easiest way to fix this would be if we could enter prices incl vat and that the cart then reduces the tax by the amount needed correctly.... and also reduce the amount incl vat in case of tax exempt customers.


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  • gijoy
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Posted 23 June 2021 - 11:21 AM #4

That's smart, but that wouldn't work for us as we have some expensive, low margin products a la iPhone on which you can't just give a couple percent discount. We will just have some ugly prices, but didn't really think much about this yet. Perhaps we will add something to round the prices to the nearest ,49 or ,99 cents



 
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Posted 23 June 2021 - 11:24 AM #5

Btw not sure if you have thought about it, but I have some concerns about the legality of your solution. It's not allowed anymore to price differientiate based on country in the EU since about a year, but to me it sounds that it's exactly what you are doing now .



 
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Posted 23 June 2021 - 01:48 PM #6

Yeah low margin products are a problem. As for price discrimination (which I think you mean?) per country, hmm, well I guess it depends on how you look at it:

 

Practically speaking, in the end I do exactly the opposite: every consumer customer pays the same on our store, incl. VAT. What is different is the price excl. VAT.

 

I can't imagine that becoming a problem... on the other hand, not doing this and just adding each countries VAT, will result in price discrimination based on country, right?


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  • johnbol1
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Posted 29 June 2021 - 07:25 AM #7

The difference between the iporting of goods into the EU fromt he UK is that all UK exports now will be zero rated for tax, and it is the import country that levies and collects the tax at the countries rate at point of delivery. b2b


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  • ChrisMila
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Posted 01 September 2021 - 09:54 AM #8

Yeah low margin products are a problem. As for price discrimination (which I think you mean?) per country, hmm, well I guess it depends on how you look at it:

 

Practically speaking, in the end I do exactly the opposite: every consumer customer pays the same on our store, incl. VAT. What is different is the price excl. VAT.

 

I can't imagine that becoming a problem... on the other hand, not doing this and just adding each countries VAT, will result in price discrimination based on country, right?

 

Same problem here, each country has its own VAT. End price is the same...

Don't know what else we can do. 



 
  • tzic
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Posted 01 September 2021 - 02:24 PM #9

Hello all,

 

any news regarding this issue? Do you know if anyone developed an addon for the one stop shop functionality?