Taxes EU VAT regulations

1

How can I link the tax (VAT) rate to a costumer ? Being localised in the EU, I need to be able to generate invoices exempt of VAT for deliveries to other member states and for export.
In case the invoice is about B2C sales to private persons localised in an other member state I need to be able to apply the VAT rate of the other member state.

2

Hello,

You can set up tax rule in ERPNext and define criteria based on which tax will be applied. Tax Rule allows you to apply tax on a customer based on their city, state, country etc. To learn more about Tax Rule, check:

https://frappe.github.io/erpnext/user/manual/en/accounts/setup/tax-rule.html

3

Is that correct? We are in the UK. If we send an order to a B2C customer in France or Germany we apply UK VAT at 20%

4

Hello Ron,
Yes it is correct. If your company is making B2C sales in a EU member state the company should apply the VAT rate of this memberstate. Fortunately the EU hos openen the VAT M.O.S.S so your company no longer has to make a VAT declaration in each menberstate it operates in. http://www.revenue.ie/en/tax/vat/moss/index.html

5

Thx a lot, this realy helps me out.

6

That looks to be specific to telecommunications.

We sell physical products

"You normally have to pay UK VAT on goods you export to customers who aren’t VAT registered. You’ll only be exempt from paying VAT if you’re responsible for delivering the goods and their value is above a certain amount called the ‘distance selling threshold’. In this case your customer covers the VAT.
"

So we charge standard UK VAT

7

Yes ron, for Tel com we can make use of the simplified MOSS regulation.
For physical products you still need to open a VAT account in each
separate member state to make a VAT declaration once you reach a max
turnover wich is for most memberstate € 35.000, but somethinmes even less.
Suppose you reach a turmover in France of € 35000 selling physical goods
to non VAT registered customers on June 15th of this year. I means you
should start selling your products to your French customers bringing
into account the French VAT rate. Your company will have to register for
a French VAT-number and start making French VAT declarations as of the
June 16th.
http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_ec_annexi.pdf

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