PemBer Tax system needs to be changed

Discussion in 'General PemBer / Paid Membership Discussions' started by Freelancer, Jun 15, 2017.

  1. Freelancer

    Freelancer New Member

    @Sadik I am sorry but I have to amend the current tax handling system in PemBer as it is not correct.

    I mentioned this before in the XF Forum:
    Taxes are not applied of the country from the user/customer that buys an upgrade, but from the country where the forum owner resides (who sells the memberships / provides the service).

    So selecting the country on check out (before payment) is absolutely not necessary since the only tax that is applicable is the one and only of the forum owner.

    This is true globally, since the seller is a business owner and has to pay the VAT to the tax office. The customer does not have to pay VAT to the tax office of his country.

    Please check the following link for more information: http://www.exporthelp.europa.eu/thd...ValueAddedTax.html&docType=main&languageId=EN

    applicable_taxes.jpg

    The ONLY exception are "B2B" or "business to business" sales but that is not applicable for forum users/customers in general.

    So please overhaul the tax application of PemBer. We just need only one tax from the forum owner's country and that could be made to be set up globally in the PemBer options.
     
  2. Sadik

    Sadik Administrator Staff Member PemBer Owner

    Hi

    I am afraid you are mistaken. Tax rate for EU is determined by which country the recipient of the service lives in. Which is what the screenshot you have here also says. "Recipient of the service" means customer, not seller.
     
  3. Freelancer

    Freelancer New Member

    No, it means the country of the service provider collects the taxes. So if I provide a service to another person then my country collects the taxes... otherwise I would have to register myself for VAT in the foreign country!

    https://en.wikipedia.org/wiki/European_Union_value_added_tax

    What is also true is that if I provide a service to a country outside of the EU or to an other business owner then I can refrain from declaring/collecting taxes.

    So the country selection you made is only partially true. What you would need is a Tax value of the seller's country to collect within the EU while if a buyer selects a country outside the EU the tax must be removed.
     
  4. Freelancer

    Freelancer New Member

    By the way my tax counsellor/advisor is okay with the collection of the same German VAT for all clients. German tax office will not complain about it. And as long as the foreign customers do not complain about it it is okay. I just want to be on the safe side. If you start to collect "Italian Taxes" while your business is established in Germany, then there is something wrong. As mentioned above, you would have to register your business in Italy then and pay taxes to the Italian tax office. That's impracticable if you sell to the entire EU and worldwide.
     
  5. Sadik

    Sadik Administrator Staff Member PemBer Owner

    I still don't agree. See https://ec.europa.eu/taxation_custo...nications-broadcasting-electronic-services_en

    Anyways, but if you want to charge only one rate and only for one country, that is easy to setup. Just define only one country and one tax rate and attach it to the product.

    By the way version 1.5.4 removes the entire country list and only shows the countries you have defined, with ability to set default. I have branched off version 1.5.4 and it will be released this Monday.
     
    Freelancer likes this.
  6. Freelancer

    Freelancer New Member

    Personally I think with that EU directive they make things more complicated. But that's typical for the EU.

    Can there be an option to charge just one VAT globally? Is that possible? I mean, yes I just want to charge one VAT (that of Germany) but charge it for everyone. Then only display a country list if there are more than one country defined in the ACP? (otherwise hide it) That would be awesome. Then still you can use the system as you have designed it but also just charge one VAT globally if you want to.

    Thanks for your consideration
     
  7. Sadik

    Sadik Administrator Staff Member PemBer Owner

    Yes you can charge only one global rate already. Just forget EU Vat, create one country, one tax and apply that tax to every product. It still displays a list of countries but in the new version there is an option to select default, so user does not have to enter it. To be released very soon.
     
    Freelancer likes this.
  8. Freelancer

    Freelancer New Member

    Excellent.
     

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