EU VAT

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    • #8461
      anthony-fortec
      Participant

      Hi,

      We have a plugin on our site which removes the VAT for EU customers when they produce a valid EU VAT number.

      We have an issue where Xeroom seems to be putting the VAT amount in as a rounding adjustment and still recording it as a 20% VAT sale. For example, this shows the order screen (the product is normally £40 but reduced to £33.33 as no VAT):

      http://prntscr.com/phvvxu

      When Xeroom posts the invoice to Xero you can see the following:

      http://prntscr.com/phvvrr

      Any ideas on how we can combat this? As I don’t think WooCommerce is recording it under any Tax rate, more of a no VAT transaction.

      Thanks,
      Anthony

    • #8524
      Peter Lloyd
      Keymaster

      Hi Anthony

      Sorry about the slow response – the screenshots in your post were detected as unsafe by google and blocked access. I have replaced them with Lightshot screenshot copies so it is safe now.

      As to your issue. In Woo each product has one and only one tax class attached to it of standard, reduced or zero http://prntscr.com/phvzsq Prices can be set to include or exclude tax. Within each of those high level categories you can set tax by geography which will override the high level category.

      I can see from your example that in Woo the order is not saved correctly with tax – if you press the recalc button you will see it and that result is what gets sent to Xero by Xeroom. If you don’t then it is screwed up and passed without VAT even though the rules you have set are to include it so Xeroom tries to fix it by treating the VAT as a rounding error which it obviously is not.

      You need some way of identifying that they and only those are to be rated as zero. So the potential solutions I can think of are:

      1. Set all EC locations to zero VAT but then those that don’t have VAT numbers will not be taxed.
      2. Set a dummy location which has zero VAT set. Once you validate the VAT number then you can select that location manually. However this means that the address is incorrect unless you add say a suffix to the country eg France (No VAT) which would work and simple to do.
      3. Copies of all your products for commercial companies only with the tax rate set to zero – this would be suitable if you are only selling a small subset to the EC which don’t have VAT.
      4. A customisation to handle it – not recommended as would be expensive to code and maintain.

      I hope these help.
      Kind regards
      Pete

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