Hallo, met Barry

WooCommerce Developer @ WooThemes

Related Posts for WordPressDownload MonitorPost ConnectorWhat The File

Who runs an

eCommerce shop?

Who sell digital

goods?

Who sells to the EU?

Who hasn’t complied to

the new EU VAT changes?

Value Added Tax

“A type of consumption tax that is placed on a product whenever value is added at a stage of

production and at final sale.”

2015 EU VAT Changes

– HMRC, Brief 46

“On 1 January 2015 the VAT rules for cross-border B2C supplies of ‘digital services’ (i.e. broadcasting, telecoms and e-services) will

change. From that date, VAT must be accounted for in the member state where the customer normally lives, rather than where the

supplier of the service is established.”

But I’m based in

Norway

We’re not part of the

EU

The new EU VAT rules on the supply of digital services

affect all companies (EU and non-EU) that sell to

consumers inside the EU.

2014

Norwegian shop sells to Dutch consumer

WP plugin: € 100 Norwegian VAT: € 25

Total paid by consumer: € 125

2015

Norwegian shop sells to Dutch consumer

WP plugin: € 100 Dutch VAT: € 21

Total paid by consumer: € 121

Selling Physical Goods

You don’t have to comply, yet.

Rumors of needing to comply January 1st, 2016

B2B Sales

New law only applies to B2C sales

Valid EU VAT number required

Different VAT Rates

• Normal Products

• Digital Products

• E-Books, Books

• Food, Medication

• Hotel, Cinema

Mixed Cart Example

Shop location: Norway / Costumer location: France

Shop sells:

• Plugins

• E-Books

• Product swag (T-Shirts)

Mixed Cart ExampleProduct Price VAT

%VAT €

Total

WP Plugin € 100 20 20 120

E-Book € 10 5.5 0.55 10.55

T-Shirt € 20 25 5 25

French VAT 20.55

Norwegian VAT 5

Total 155.55

Compliance

Being Compliant

• Charge the correct country VAT rates based on customer’s location.

• Validate the customer’s location and ensure there are 2 pieces of non-conflicting evidence stored (e.g. a billing address and a matching IP Address).

• Report your VAT to each EU state, or use a MOSS (Mini-One-Stop-Shop) which reports to each EU state on your behalf.

Become Compliant

• Self hosted solutions

• SaaS solutions

SaaS Solutions

TaxamoWooCommerce, EDD www.taxamo.com

EU VAT API WooCommerce, EDD vatinfo.eu

Self Hosted Solutions

WooCommerceEU VAT Number

Easy Digital Downloads VAT Support

EU VAT Number

• WooCommerce extension

• Adds EU VAT number field for B2B

• Collects evidence

• VAT reporting in WooCommerce backend

EU VAT Rates

Importing Tax Rates in WC

WooCommerce EU VAT Rates for Digital Goods Sync

https://wordpress.org/plugins/woocommerce-eu-vat-rates-sync/

source: poststatus.com

Question: Do you have an eCommerce store that sells digital goods? Are you complying with the new EU VAT rules?

Invoice Challenge

• A lot of countries have different invoice rules

• Some countries require the invoice to be in local currency

MOSS

MOSS

• Mini One Stop Shop

• Each member state has its own MOSS

• Register in one of the EU member states for MOSS

• Not based in EU? Register in one of the member states

Paying MOSS

Shop owner pays declared VAT for quarter to MOSS

MOSS divides money between member states

Declaring VAT to MOSS

VAT declaration will be done quarterly

Still unclear on how to declare taxes

Barry Kooij

@CageNL

barrykooij.com