How Do I Setup Value Added Tax (VAT) Support?
- Initial Configuration
- Specifiying Settings for a Customer
- Changing Customer Exemption Status
- API Support
Settings for VAT support consists of one directive in Configuration->Product Settings. Provide the current rate for your locale in percentage format (e.g. 19.6). Once this setting is saved, new VAT-specific form fields will be available when creating and editing customers in the admin GUI.
After VAT has been configured, two new form fields are available on the New Customer and Edit Customer interface.
Simply indicate whether or not the customer is VAT exempt using the VAT Exempt checkbox. If the customer is exempt, check the box. If not exempt, uncheck the box.
If the customer has a VAT number for exemption, provide the number. The number will be presented to the customer in the payment receipt default email templates.
The same fields are available when editing an existing customer.
When VAT support is enabled (see Initial Configuration above), by default every customer is charged VAT. You may decide whether or not a customer is VAT exempt (see Specifying Settings for a Customer above). If you change a customer's exemption status in the middle of a billing cycle, the VAT charge for the customer's current invoice will change according to the exemption status you specify.
Similarly, yet conversely, when the product VAT rate is changed (see Initial Configuration above), customers' current invoices maintain the VAT rate as set at the time of invoice creation. In other words, the VAT rate in effect at the time of the beginning of each customer's billing cycle remains until the next billing cycle begins. At the beginning of the next billing cycle, the product VAT rate currently set in Configuration->Settings will be set for the new current invoice.
The same fields are available via the API when creating a new customer or editing an existing one. See the API Documentation for more information.