Zero-rated VAT

[Guest]

I'm soon going to be trading and I'm based in the UK. I'll be shipping my products anywhere in the world. But I have a problem...

 

...my accountant tells me that if I ship to non-EU countries, then I should be charging VAT at 0%. This is different to VAT-exempt. So I've set-up a zero-rated VAT class but I cannot get it to show in the Order Confirmation screen.

 

Any ideas, anyone? Surely someone in the UK must be doing something like this? Or do you just not bother showing the 0% VAT?

 

Thanks,

 

Roger

[burt]

My understanding:

 

1. If you sell to non-EU countries you should not charge VAT at all.

 

2. If you sell within the EU and the buyer cannot provide a VAT number, you charge 17.5%

 

3. If you sell within the EU and the buyer can provide a VAT number, you charge 0% and show their VAT number on your Invoice.

 

You would be well advised to seek a 2nd opinion as I am by no means an expert on Tax legislation.

[Guest]

From my accountant...

 

1). Ordered from an EU address and shipped to an EU address:-

Vat payable if in same country, or if to public within EU. If to a business in another country within the EU and their international VAT no. shown on invoice, then Vat charged at 0% and they charge themselves on receipt.

 

2). Ordered from an EU address and shipped outside the EU:-

Vat payable but at 0% (zero-rated). This may appear pedantic, but this is different to no Vat because an item is exempt.

 

3). Ordered from outside the EU and shipped within the EU:-

Same as (1) because transaction within EU.

 

4). Ordered from outside the EU and shipped outside of the EU:-

Same as (2).

 

But none of this helps with showing 0% VAT - it gets hidden as far as I can see if tax rate is set to zero.

 

Roger

[nick]

Have a look at this thread http://www.oscommerce.com/forums/index.php?showtopic=76315.

 

Has quiet a bit of info.

[sysmod]

Have a look at this thread http://www.oscommerce.com/forums/index.php?showtopic=76315. 

 

Has quiet a bit of info.

<{POST_SNAPBACK}>

 

OK, this EU VAT number problem appears to be a FAQ.

I've just started in this and I got a bit concerned when the owner of the site hosting my shopping cart, instead of saying "this is how you set it up", said "you've asked about a complex topic" and referred me to these forums for answers. So there is no ready made answer. That's amazing for a product that is supported in Europe, surely correct VAT handling should be part of the core of the product?

 

I don't want to have to patch PHP code, especially if OSCommerce gets upgraded and I lose the customisations.

 

That thread pointed to:

http://www.oscommerce.com/community/contributions,1590

TVA Intracommunautaire v2.0

Install.txt in French.

 

What is a "contribution" and how do I install it - in English please!

 

If that question is also a FAQ, just point me to the knowledgebase answer there.

 

TIA

 

Patrick

[Guest]

From my accountant...

 

1).  Ordered from an EU address and shipped to an EU address:-

Vat payable if in same country, or if to public within EU.  If to a business in another country within the EU and their international VAT no. shown on invoice, then Vat charged at 0% and they charge themselves on receipt.

 

2).  Ordered from an EU address and shipped outside the EU:-

Vat payable but at 0% (zero-rated).  This may appear pedantic, but this is different to no Vat because an item is exempt.

 

3).  Ordered from outside the EU and shipped within the EU:-

Same as (1) because transaction within EU.

 

4).  Ordered from outside the EU and shipped outside of the EU:-

Same as (2).

 

But none of this helps with showing 0% VAT - it gets hidden as far as I can see if tax rate is set to zero.

 

Roger

<{POST_SNAPBACK}>

 

 

I have setup a shop for a client in the UK and Tax does not appear on the invoices for customers outwith the EU as a sub-total but does appear against each line item. My client seems quite happy with this setup (and he has been trading for a few years).

 

example below:

Products  Model  Tax  Price (ex)  Price (inc)  Total (ex)  Total (inc)

1 x  The Lads Among Heather Volume 2

  - Version (surcharge): Multi format DVD  506008069019  0%  ?13.60  ?13.60  ?13.60  ?13.60

 

as you can see there is a tax column with 0% in it. But that is not setup as zero rated, it uses the same tax class (Taxable Goods) and the rate is set at 17.5% for EU and 0% for Non-EU

 

I thought zero rated vat was for a specific category of goods like childrens clothes etc, and not just to be used to not charge vat for those outwith the EU