Cross Border Tax Settings for Business Clients

ce-1.9.0.1customer-grouptaxtax-classvat

The situation is as follows: We have enabled "cross border trade" and it's working fine (we have products with Gross price defined and VAT is being calculated based on customer country. For each country each customer sees the same end price).

The problem is with our B2B customer, which should have VAT calculated, but they should not pay it.

For example:

  • Retail customer: Gross price 100EUR, VAT for his country is 25%, so VAT is 20EUR.
  • For B2B customer it should be same, but total for him should be excluding tax (80EUR).

Is there a way to set it up (for example with customer groups + tax classes). We're fighting with this for a while and can't google out any solution. Also I can't believe we're the only ones to have that problem. How do you solve it?

Best Answer

I know exactly what @Meta means. We have the same problem. I will try to explain to make the situation more clear.

We sell a product for € 79,95 including tax. No matter what the tax rate is for a country.

So let's see two examples:

  • The Netherlands: € 79.95 including 21% tax (€ 13.88 tax)
  • Germany: € 79.95 including 19% tax (€ 12.77 tax)

When a B2B customer orders we need to exclude the tax. But the cross border trade setting handles it the same as any other rate. Understandable but thats not what we want.

So with cross border trade enabled it does:

  • The Netherlands: € 79.95 excluding tax (€ 0.00 tax)
  • Germany: € 79.95 excluding tax (€ 0.00 tax)

While what @Meta want is:

  • The Netherlands: € 66.07 excluding 21% tax (€ 13.88 tax)
  • Germany: € 67.18 excluding 19% tax (€ 12.77 tax)

While what I want is:

  • The Netherlands: € 66.07 excluding 21% tax (€ 13.88 tax)
  • Germany: € 66.07 excluding 21% tax (€ 13.88 tax)
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