Introduction
There are specific tax rules that will determine when and if tax rates are applicable on specific orders. At the basic level, this can be determined at the customer level and the options here are:
Intra EU (reverse charge): this should be used when your company and the customer are inside of the EU. It will show reverse VAT as description on the invoice.
No VAT:
You should use this if your company is based in the EU and the customer is based outside of the EU
If you are based in the UK and the customer is based outside of the UK, then you should select this option
VAT: if your customer is based in the same country as yourself
However, this is often not the only factor in considering the appropriate tax to apply, it can also be dependent on the goods and where they will be picked up and ultimately delivered.
Automatically determine Tax
The system can automatically determine the appropriate tax type to apply to the order. This is set in the customer profile with the 'Apply VAT Exceptions for Import/Export' toggled to ON.
Tax type is then determined based on:
Country of the Customer, determined based on the VAT Number and the Billing Address.
Order Pickup and Delivery locations.
The determination is based at the CUSTOMER level. Updating the customer will recalculate the tax. Changing the collection and delivery locations will not.
For Import / Export orders (containers) tax type is often determined based on the COUNTRY OF ORIGIN or COUNTRY OF DESTINATION of the goods, and not the collection or delivery locations. Under the consignment information, it is possible to add this information.
Tax Type in Orders
Tax exceptions will be shown, if applicable when adding a charge in the order. If applied, the 'Set VAT Automatically' toggle is set to ON, and the VAT % rate will be greyed out and unavailable.
