Implemented VAT on Checkout

Hello!

Testing version 5.2.3. Can you please describe the logic behind the VAT on checkout, because some things are confusing.

I am a registered B2B with a country set to Latvia and validated VAT number. On checkout I have a message "Country [Latvia] is forced to pay VAT". It is totally fine, because my business country is Latvia and I set Forced VAT for Latvia in Countries. VAT is applied. But when I change on the checkout form to another country then Total VAT becomes 0%. Why? VAT number is wrong (The entered Country Code in your VAT Number seems incorrect for your selected country or is missing). It should apply VAT % as per country so there should not be any VAT deduction until VAT is validated on the form.

Kind regards,
Dmitrijs

Hi,
here is the logic implemented:

1. when a business (B ) or consumer (C) from you own country does a purchase: VAT is applied
2. when a C from another EU country does a purchase: VAT is applied (either your countries VAT or the VAT of the C country ( = config setting)
3. when a B from another EU country does a purchase:
   1. with a valid EU VAT number (successful VIES check = proof) > no VAT applied 0%, this is a so called Intra-Community transaction
   2. without a valid EU VAT number > VAT applied
4. when a B or C from outside the EU (e.g. US) does a purchase: VAT is exempt = 0%

Thank you. That is correct logic - as I expected.
But why VAT is set to 0% when I change the country on the checkout (even for EU countries)? VAT number is wrong (The entered Country Code in your VAT Number seems incorrect for your selected country or is missing). If VAT number is wrong VAT should be applied.

Kind regards,
Dmitrijs

did you also set the country to the country you are doing the vies check for?
So when you test with a german (DE) VAT number the country should also be set to Germany.

Can you try that?

If the VAT number is then invalid, you will get the following message + VAT is applied:

"The official (external) EU VIES control returned the entered VAT/VIES registration number as invalid.
This could be for a number of reasons, including technical limitations, which are beyond our control.
As a retailer, we are responsible for a correct VAT administration which requires a valid EU VIES validation. for that reason we are obliged to add VAT to your invoice, you can get the VAT back through your own VAT administration.

You can perform a manual check here: (ec.europa.eu). If the manual check is valid, you can retry the validation on this site by re-entering the VAT number."

Also, can you check the config setting:

1. General tab > Default Country = Latvia
2. EU Vat tab >
   1. Forced VAT Countries = Latvia
   2. VAT Country = Shop
   3. Shop Country = Latvia
   4. Vies Check Leading Country = Customer Country

My current setup is:
General tab > Default Country = Latvia
EU Vat tab > Forced VAT Countries = none
VAT Country = Customer
Vies Check Leading Country = Customer Country

Change it to:
General tab > Default Country = Latvia
EU Vat tab > Forced VAT Countries = Latvia
VAT Country = Customer
Vies Check Leading Country = Customer Country

Let me explain step by step. ( B ) Customer.
1) Enter checkout with country Germany and without VAT entered.
2) Change to any other EU country > VAT % changes and is equal to selected country rate.
3) Change back country to Germany > VAT changes to 19%.
4) Enter the correct German VAT number and validate. Message > No VAT has been applied. VAT > 0%.
5) Enter the incorrect German VAT number and validate. Message > The official (external) EU VIES control returned the entered VAT/VIES registration number as invalid. VAT > 19%.
6) Change the country to Finland > VAT changes to selected country rate 25%.
7) Validate with incorrect German VAT number. Message > The entered Country Code in your VAT Number seems incorrect for your selected country or is missing. VAT reset to 21% (Latvia?). Why? It should be selected country rate. 

And one more case.

( B ) Customer.
1) Enter the checkout with country Latvia and with correct VAT entered. Message > VAT applied: Country [Latvia] is forced to pay VAT. VAT > 21%.
2) Change to any other EU country (not Latvia) > VAT does not change and stays on 21%. Bug?
3) Change to any other EU country (not Latvia) one more time  > VAT changes to 0%. Bug?
4) Validate with Latvian VAT number. Message > The entered Country Code in your VAT Number seems incorrect for your selected country or is missing. VAT reset to 21% (Latvia?). Bug? It should be selected country rate.
5) Change to any other EU country (not Latvia) one more time  > VAT changes to 0%. Bug?

Kind regards,
Dmitrijs

Hi Dmitrijs,
so found the 'issue' here as this is a side-effect of when the customer has typed his VAT address and changes the country not having to retype the VAT address.
in the link above (private message) I have a 3.5.1.DEV version for the component where the JS (both script.js and checkout.js) have changed to force clearing the VAT number and rechecking when the country switches.
Can you test if this fixes your use case?

Important: this is an updated 3.5 version so you should install this on version 3.5.0 (currently the latest, release yesterday)

Installed. Now it cleans the VAT number on country change, but it also set VAT to 0%

can you test above version, followed both your use cases to the letter and these work correct.
If you can confirm that would be great, if you are trying a new use case that fails please share so i can reproduce.