VAT changes from July 1, 2021. Store update.

23/08/2021

We have released an update regarding the calculation of VAT for transactions within the European Union. This is related to the legal changes that came into effect on July 1, 2021.

The update enables the calculation of VAT in international transactions in accordance with the new regulations. The main change is that customers from the EU make purchases with the VAT rate applicable in their country. Until now, the VAT rate was calculated according to the seller's country. More information: Changes in VAT from July 1, 2021 for online stores

Changes in software

  • Defining separate VAT rates for customers from EU countries.
  • Linking products to variable VAT rates.
  • Handling exceptions, e.g. products with a different VAT rate in selected countries.
  • Order updates.
  • Invoice updates.
  • Email message updates.
  • Product edition updates.
  • Delivery zone edition updates.
  • Store information updates.
  • Language version updates.

New EU VAT rates for consumers. Example.

  • An online store based in Poland sells to an individual from France with a rate of 20% (applicable to the country of France) instead of 23%.
  • If the product for the Polish customer costs 123 PLN gross (100 PLN net), then for the customer from France the price should be 120 PLN gross.

How to activate EU VAT for consumers?

Activating EU VAT for consumers (option is off by default):

  • Fill in the seller's country field in Store Information: Configuration->Module Configuration->Store Information field "Country".
  • Set the VAT rates for EU countries that are set in deliveries: Configuration->Module Configuration->VAT Rates. For the correct operation of EU VAT for consumers, it is necessary to define the appropriate VAT rates for a given EU country.
  • Activate EU VAT for consumers: Configuration->Module Configuration->VAT Rates->Configuration
  • Make a test order indicating the EU delivery country for an individual customer to verify the settings and VAT changes.
  • If we want to activate VAT rates for a new country, we must first add it in the delivery configuration.
  • It is possible to set a default delivery country in the language version configuration.

Related Documentation

When to activate EU VAT for consumers?

Stores that do not exceed the 40,000 PLN annual limit in transactions to private individuals to other EU countries (total limit) can sell abroad from Poland on the same terms. However, we recommend installing the update in all stores, even those that sell abroad occasionally, so that they can take advantage of the new features at any time.

We remind you that adapting the store to the applicable law is the obligation of every seller.

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