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Different VAT rates for EU Countries

Posted: Sat Jun 26, 2021 8:24 am
by ReneH4
Since I am in the process of adapting different TAX rates for different EU countries, I came across a variable for each TAX rate.

Maybe someone can clarify. It's the variable "Priority" stated before the different rates. See the image below.

Another question that I have, is if my shop is configured with different TAX rates, which rate will it show if the customer is not logged in? (When a customer IS logged in it will ofcourse show prices including TAXrate for that specific country).

Courious on the answers.
BTW rates.jpg

Re: Different VAT rates for EU Countries

Posted: Sat Jun 26, 2021 11:03 am
by 14Steve14
This is something that I recently thought about with the latest changes to EU VAT happening on the 1st July. It will be interesting to see what can be done.

I cant even figure out an easy way of adding all the different VAT rates for each EU country.

Re: Different VAT rates for EU Countries

Posted: Sat Jun 26, 2021 12:19 pm
by raiwa
This is just a starting point as I'm already using the EU tax rates since time in my store (virtual products).
Attached a zip which includes sqls for the 3 tables involved in EU tax setup for all EU countries with the standard (highest) tax rates.
geo_zones.sql
tax_rates.sql
zones_to_geo_zones.sql

The sqls do not include the drop table command, so you may get duplicates for your country's already existing
rate. Please cleanup for your needs.
Don't forget to make a DB backup before using this.
If someone has a time to complete it with the reduced tax rates and pack it nice as an addon, go ahead.

Re: Different VAT rates for EU Countries

Posted: Sat Jun 26, 2021 2:37 pm
by ReneH4
Steven, if you are selling from the UK and your products are shipped from the UK I think this is of no concern to you.

This is only within EU countries, and to my latest knowledge the UK is not a part of the UK anymore :-)?

Correct me if I'm wrong.
14Steve14 wrote: Sat Jun 26, 2021 11:03 am This is something that I recently thought about with the latest changes to EU VAT happening on the 1st July. It will be interesting to see what can be done.

I cant even figure out an easy way of adding all the different VAT rates for each EU country.

Re: Different VAT rates for EU Countries

Posted: Sat Jun 26, 2021 2:39 pm
by ReneH4
Thanks Rainer, I will have a look at it. I'm sure it will be of use.

I will start implementing FROM July 1st. Most of my export goes to Belgium, which luckly has the sam VAT rate as the Netherlands :-)
raiwa wrote: Sat Jun 26, 2021 12:19 pm This is just a starting point as I'm already using the EU tax rates since time in my store (virtual products).
Attached a zip which includes sqls for the 3 tables involved in EU tax setup for all EU countries with the standard (highest) tax rates.
geo_zones.sql
tax_rates.sql
zones_to_geo_zones.sql

The sqls do not include the drop table command, so you may get duplicates for your country's already existing
rate. Please cleanup for your needs.
Don't forget to make a DB backup before using this.
If someone has a time to complete it with the reduced tax rates and pack it nice as an addon, go ahead.

Re: Different VAT rates for EU Countries

Posted: Sat Jun 26, 2021 3:24 pm
by ReneH4
Looking into your SQL's I understand the changes Rainer. But I think I already did.
It confirms my thoughts.

Still I don not understand the parameter `tax_priority`.

Als my question stands: which tax rate is shown when a cutomer is not logged in, and "display prices including TAX" is set to on?

I have now two tax rates in my live shop, and it still shows the rate that was genuinely set (21% for Netherlands).

I whish to keep it that way, because most of my customers are in the 21% zone.

raiwa wrote: Sat Jun 26, 2021 12:19 pm This is just a starting point as I'm already using the EU tax rates since time in my store (virtual products).
Attached a zip which includes sqls for the 3 tables involved in EU tax setup for all EU countries with the standard (highest) tax rates.
geo_zones.sql
tax_rates.sql
zones_to_geo_zones.sql

The sqls do not include the drop table command, so you may get duplicates for your country's already existing
rate. Please cleanup for your needs.
Don't forget to make a DB backup before using this.
If someone has a time to complete it with the reduced tax rates and pack it nice as an addon, go ahead.

Re: Different VAT rates for EU Countries

Posted: Sat Jun 26, 2021 3:41 pm
by raiwa
Als my question stands: which tax rate is shown when a cutomer is not logged in, and "display prices including TAX" is set to on?
I would say it shows then the store country's Tax rate.

Re: Different VAT rates for EU Countries

Posted: Sat Jun 26, 2021 6:58 pm
by ReneH4
That could indeed be the case Rainer, good thinking!
raiwa wrote: Sat Jun 26, 2021 3:41 pm
Als my question stands: which tax rate is shown when a cutomer is not logged in, and "display prices including TAX" is set to on?
I would say it shows then the store country's Tax rate.

Re: Different VAT rates for EU Countries

Posted: Sun Jun 27, 2021 6:51 am
by heatherbell
ReneH4 wrote: Sat Jun 26, 2021 3:24 pm Still I don not understand the parameter `tax_priority`.
The Priority might not have any use to you in your location.
We have never used it but I think it is used in some locations when 2 Tax Rates are applicable to a sale - e.g. maybe a 'Local Tax' and a 'National Tax'.
It says Tax rates at the same priority are added, others are compounded.
So, e.g. I guess if you have 2 Tax Rates (e.g. both 10%) both set at Priority 1 applicable to a product (e.g. $1.00), calculation would be 1.00 + 0.10 + 0.10 = 1.20 (added) but if Tax Rates had differing Priority the calculation would be 1.00 + 0.10 + 0.11 = 1.21 (compounded).

Re: Different VAT rates for EU Countries

Posted: Sun Jun 27, 2021 7:41 am
by ecartz
heatherbell wrote: Sun Jun 27, 2021 6:51 am the calculation would be 1.00 + 0.10 + 0.11 = 1.21 (compounded).
That might be easier to understand if you wrote it

(1.00 + 0.10) * (1.00 + 0.10) = 1.21

Otherwise, there's a "where did you get the .11" question.

Priority also controls the order in which the taxes are listed, which may change the display of the description.

I notice that both combinations show as + in the description. That was probably due to the way that descriptions used to be loaded. We could change that to * or similar for the compounded rates if we preferred (so it would look like Priority1 + Priority1 * Priority2). Perhaps that would need to be set in a language file? Not sure if * indicates multiplication in all translations.