Example
Let's say you are selling a product which in most of EU countries is taxed with "standard rate". Of course, since this standard rate is usually different in every country, so what you should do is:
- Create VAT rates for countries of your choice, e.g. the UK: 20%, Poland 23%, Germany 19%, etc.
In "Client type" field you can select type of clients that should apply this rule.
When VAT rates are considered, the "Client type" will be automatically assigned to a customer, based on customer's country and provided VAT identification (VATIN) number.
The rules are as follows:
- Commercial - customer's billing is EU country and the VATIN number is valid according to VIES system
- Individual - user did not select the country OR the country is outside EU OR entered VATIN number is either empty or invalid.
- Create VAT rule named "Standard rate" and assign all previously created rates to it. The tax rate you need provide in here is the default rate (usually your domestic VAT rate) which will be used in the back-end, for your information only.
- Create a product and select "Standard rate" tax rate.
