New ideas about VAT

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Pedro Pablo
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Joined: 12/02/2010
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Answered

Sorry, I added this comment to a closed post on the VAT issue... so now I open a new thread to talk about this...

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Taking into account that the VAT thing is something all those selling to or from any EU country would need to take care of, I think it makes some sense trying to figure out a way to deal with it (which btw, I think it would be an excellent feature for MS-Suite to gain market in Europe, where Drupal community is very strong).
Summing up, there are mainly to ways to deal with VAT:
- As an EU seller. The seller only taxes VAT for other EU buyers, no matter the original country of the buyer. Buyers out of EU are not taxed. The tax level is that of the seller's country
- As a seller outside EU selling to EU buyers. The tax level is that of the country of each buyer.

I guess a good approach could be to manage this in a country oriented fashion. In the settings page, add a "use advanced VAT" setting, where you can also specify if you as a seller are located inside or outside EU, and a tax value to be applied if inside. If that option is activated, just ask the buyer where he is from, with a country field, during registry or checkout, and then modify prices accordingly (and save them to same place). It would be easy to have a mini table (or some variables) to store some EU countries and their VAT values (which should be configured by the seller at the time of setting up the suite). As the added taxes would be easily associated to the country where they are dued, reporting, and later payment to authorities would be very easy.

One can argue that asking the buyer where he is from seems not enough to prevent fraud. But buyers are always enforced in the terms of the site to reflect true data, so if there is some fraud in the provided info, it is not the seller's fraud, but the buyer's.
I am not a coder (though I can mostly read it) but it does not look a very heavy task to do. Maybe the need to enforce that country field before checkout... and I think it would help to boost MS-Suite sales in EU

What do you think, Leighton?

Leighton Whiting
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Joined: 06/02/2009
There are some good ideas

There are some good ideas here, I'll write them down and see if we can get it implemented in a future version.

One issue is that not all modules ask the user for their address (PayPal WPS for example) on the site. So we would need to add a field on the Checkout Page that asks the user for their Country, and then adds the appropriate VAT tax as applicable to the order - before the user continues with Checkout.

I'll give this some more thought...

Sincerely,
Leighton Whiting

Leighton Whiting
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Joined: 06/02/2009
Just throwing up another idea

Just throwing up another idea I just had, maybe we could add a new module called 'Country Fees' or something that will let you set certain countries that have an added fee, and the amount of the fee (percentage/flat). This would open it up for more uses than just VAT.

Sincerely,
Leighton Whiting

Pedro Pablo
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Joined: 12/02/2010
That would be a great approach

Having this feature as an added module makes lot of sense to me. That way it could only have to alter other modules functionality at checkout (just to select the country) and would provide lots of flexibility (what good code is about), have its own reporting and configuration and so on, making VAT implementation just a matter of documentation and setting up tutorials.
As usual, great idea, Leighton. A big +1 for that module.

Leighton Whiting
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Joined: 06/02/2009
There is now a VAT solution

There is now a VAT solution in the 7.x-2.x dev version of MS Core. I'll be posting a video tutorial explaining how to use it tomorrow, and backporting it to 6.x tomorrow too.

Sincerely,

Leighton Whiting

Leighton Whiting
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Joined: 06/02/2009
Here's the new tutorial:

Here's the new tutorial: http://www.moneyscripts.net/tutorials/affiliates-suite/working-vat-diffe...

I need people to give it a try and see if there are any bugs. before I can release it. It's in the dev version now.

Sincerely,

Leighton Whiting

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