Improve Tax feature in Membership Pro 1.6.8

Hi John

Seems what you are saying is exactly like how to Gabriel said. But it is different from what Stephen said (so strange). With your need, I believe the version I sent you via email will work

For Stephen need, I will need to implement it in a different way. I will think about it and implement it as well (for you Stephen ). I will give you the updated version on tomorrow (not sure there is a way to make it works for both of you - need to think about it carefully)

Tuan

Hi
It looks like we are all agreed of the most here with som some small differences.

@John
What if you sell to business with in your own country?
Dont you take out VAT then?

If not, then we have different rules here in the EU, which doesn´t make things easier.

Tax rules in Sweden
Pay tax
If you run a business where you shop with goods or services in Sweden, you are obliged to charge VAT from your customers and remit sales tax to the state. VAT is therefore no cost to you, it is a tax that you take out of the customer and pass on to the state.
This is output VAT.

Obtain VAT refund
As a rule, you are entitled to deduct the VAT you pay on purchases for the business. So you get back VAT that you have paid when you bought a product or service.
This is input VAT.

This is why I must have the VAT visible if I sell within Sweden to a business.

WHAT WE NEED MEMBERSHIP PRO TO DO ON THE BACK END

COUNTRIES AND TAX
Be able to add different TAX RATES for all European Countries.

INVOICING
Invoice needS to show the following details.

SELLERS DETAILS
Name
Address
Email
VAT NUMBER


CUSTOMERS DETAILS
Name
Address
Email
VAT NUMBER


DETAILS OF CUSTOMERS PURCHASE
- Subscription Cost
- Tax Applied
- TOTAL (subscription cost + Tax Applied)

I agree with this

WHAT WE NEED MEMBERSHIP PRO TO DO ON THE FRONT END

When Subscribing on Membership Pro
1: Customer adds their NAME, ADDRESS, COUNTRY, EMAIL PASSWORD ETC.
The best way to validate the Country here would be to check the users IP ADDRESS and set the country according to their location.

2: - 2A: If the COUNTRY selected is in the EU then the customer should be given the option TO add a VAT NUMBER if they are a business.

EXAMPLE: IF YOU ARE A BUSINESS PLEASE ADD VAT NUMBER IN FIELD PROVIDED.
(validate VAT NUMBER - I do not know how you will do this)

I agree with this

- 2B: If NO VAT NUMBER is added then TAX is applied (TAX applied is the TAX RATE of the Customers Country).
IF VAT NUMBER is valid then NO TAX is applied.

I agree partially. If I as seller here in Sweden sells to business here in Sweden then TAX must be applied.

3: In Payment Information the customer should be able to see the PRICE, DISCOUNT AMOUNT, TAX, GROSS TOTAL.

I agree with this

Regards
Stephen

As I mentioned above, by looking at other extensions code (one provided by Stephen and one is Akeeba Subscriptions - which is discounted the development for now), I see that it works exactly as Stephen mentioned

So maybe something different in John and Gabriel countries (or maybe John and Gabriel mis-understood the tax rules in your country) ?

Anyway, I will work on it today and will find a solution for both of you

Tuan

Two rules which John and Gabriel should check it again :

1. According to Stephen and other two extensions which I know, if you are from the same country with the site owner and purchase a subscription, you will still being charged tax no matter you have a valid VAT number or not. That's your local country tax rate. (John and Gabriel said that it is free in this case if you have a valid VAT number)

2. If you are in EU and from a different country with the site owner, and don't have VAT number, you will be charged tax with the tax rate is the site owner country tax rate, not your country tax rate.

Please look at it carefully and get back to me

Thanks for all your help.

Tuan

Tuan Pham Ngoc wrote: Two rules which John and Gabriel should check it again :

1. According to Stephen and other two extensions which I know, if you are from the same country with the site owner and purchase a subscription, you will still being charged tax no matter you have a valid VAT number or not. That's your local country tax rate. (John and Gabriel said that it is free in this case if you have a valid VAT number)

2. If you are in EU and from a different country with the site owner, and don't have VAT number, you will be charged tax with the tax rate is the site owner country tax rate, not your country tax rate.

Please look at it carefully and get back to me

Thanks for all your help.

Tuan

Verified 1) and 2) could be valid here, too. Then you may proceed with that as the default new version.

OK, great. Thanks for confirming. If time allowed, I think we can have a built in feature to generate default tax rules for EU countries to save time (otherwise, you will need to create many tax rules - it will waste your time.

Tuan

OK. I have final implementation for this feature today. I sent it to Gabriel on Skype and one copy to Stephen via support ticket. Please help testing it and report the result back here so that I can make any necessary changes and make it offical release.

One thing you should know is that the new code I sent to you have a hidden feature to help building EU VAT Tax Rules autoamtically. Please follow the instructions below to use that feature:


1. Install this updated version

2. Go to Membership pro -> Configuration, make sure you set Default Country to your Country

3. In the web browser, type :

(of course you need to replace yoursite.com with your site domain).

Then the extension will build the tax Rules for you automatically.


The way EU tax rules work is exactly as Stephen described. Here is another useful URL about it (provided by Gabriel) in case you want to read and confirm : thenextweb.com/dd/2015/01/01/need-know-2...ges-implemented-tnw/

Thanks again for all your help !

Tuan

Another useful URL with details about each EU country VAT % rate to be taken into consideration: ec.europa.eu/taxation_customs/resources/...tes/vat_rates_en.pdf
Hope this helps, too.

Hi
Sent you some feedback via support ticket.

Hi
Just sent you a comment through ticket