Automatic VAT calculation for the EU + VAT calculation bugs

[Luis L]

Tax calculation in the EU is very specific and I don't think it should be necessary any action for the admin to configure it. Currently there are some system default VAT templates that work more or less, but not always.

For example, I have created a customer with the billing address in the EU and an EU VAT and the cart still applied the VAT of the billing address (instead of 0%). Even if I switched between addresses or reloaded the page, it still charged a VAT. Then I disabled and enabled again the business checkbox and it changed to 0% VAT (with the same address).

On the other hand, I also tried with a customer with registration number but not VAT number, and the cart charged a 0% VAT instead of the national one. But later I tried with other customer and it applied the correct VAT.

I think the VAT calculation needs to be revised in order to be consistant and apply always the same VAT for the same address data.

Apart from that, it feels like the VAT settings are actually "copied" to user settings and I think they should be just calculated from Upmind side, so all the rules will be always updated without any user action (keeping the ability for the user to make own rules).

And finally, for EU VAT numbers, that would be a great feature to have if Upmind would be able to check if VAT number is correctly registered in VIES systems. Having an invoice with a 0% VAT and an invalid customer VAT number can be quite a headache in terms of accounting.

 

Another option would be if Upmind would just be able to connect to other accounting softwares for VAT calculation (for example Stripe Tax would be a great option, although fees could be very high when using Stripe Payments and Tax at the same time).

[Seb]

On the VAT calculation - we're not aware of any issues of it not working correctly. The predefined EU VAT template does work. Maybe it wasn't applying the business to the order properly which we'll check - but essentially the EU reverse charge works if there is a business with a VAT registration in another EU country to your own.

What we've built though (intentionally) is definitely a way to configure everything you want and give you power to set things up in certain ways. We have to start advanced and then simplify, because it's almost impossible to do the other way around.

We're likely to have a 'simple' mode where we essentially have logic on our side, and an 'advanced' mode as it works at present which lets you configure things how you want. 

There are some third parties we can connect to in order to get tax rates but we're trying to keep our cost price for users as cheap as possible (e.g. free). If we start adding third party services that comes with a cost for everyone.

 

[Luis L]

I have actually detected a wrong behaviour in VAT calculation. For example, just create a business address with an Spanish address, and put any registration number as Q2826000H but leave Tax number empty. It will change VAT to 0% instead of applying national VAT (if you can't reproduce this behaviour I'll send you a video). There are also other wrong behaviours which I can't remember right know, but as soon as I notice again I'll write it here.

[Seb]

9 hours ago, Luis L said:

I have actually detected a wrong behaviour in VAT calculation. For example, just create a business address with an Spanish address, and put any registration number as Q2826000H but leave Tax number empty. It will change VAT to 0% instead of applying national VAT (if you can't reproduce this behaviour I'll send you a video). There are also other wrong behaviours which I can't remember right know, but as soon as I notice again I'll write it here.

This is something you can configure. See screenshot. This is under settings > tax > tax templates > [choose the tax template] > [choose the rate]

 

[Luis L]

I have just checked and I have configured like you said (with default VAT rules). But it still applies a 0% VAT filling the registration number but not the VAT number after clicking some buttons. I can send you a screen capture in private (as it displays business data) and you can check it's not working properly.

[Seb]

Sure - go ahead and send it over

[Luis L]

PM sent 🙂