General information

A shop owner that sells products or services in the EU needs to know, and fulfil, the requirements of EU VAT laws: our plugin YITH WooCommerce EU VAT & OSS helps you to geolocate and identify your European customer’s location and automatically apply the correct VAT rate for B2C orders.

If you sell B2B, this plugin allows you to show a field in the check-out page where businesses can validate VAT and be exempted from VAT at your store.

The plugin is also updated to help you handle the new One-Stop-Shop (OSS) procedure required for all online retailers managing EU sales from 1 July 2021. With this plugin, you can monitor the sales threshold (10.000 €) for B2C exports to other EU countries.

With the IOSS procedure, if your base country is outside the EU and your shop is registered in the OSS regime you can avoid charging VAT to EU customers when their orders are above the value of 150€.

For both IOSS and OSS you can generate tax reports (monthly, every 3 or 6 months, yearly, etc.) and export them as CSV to easily notify your local tax authorities about your sales.

General settings

From the tab General settings, you can set up all the plugin options.

EU VAT general settings

  • EU VAT field label: here, you can enter the text for the field EU VAT on the checkout page.
  • EU VAT field placeholder: here, you can enter the text to use as a placeholder for the field EU VAT on the checkout page.
  • EU VAT field description: here, you can enter the text to use as a description for the field EU VAT on the checkout page.

Set VAT as mandatory

  • Set VAT as mandatory: if enabled, the VAT field will be required.
    • Mandatory VAT notice: you can enter the text to show as a message to users who don’t complete the required VAT field.

Hide VAT field if VIES server is down

  • Hide VAT field if VIES server is down: by enabling this option, the VAT field will be hidden in the checkout, if the VIES server used to validate the VAT is not responding.

Prevent orders from EU customers

  • Prevent orders from EU customers: enable this option if you want to prevent European customers from placing orders in your shop.
    • EU customers warning in cart: you can choose to show a warning message on the cart page to notify EU customers about the impossibility to complete their purchase.
    • EU customers error message on the checkout page: you can choose to show a warning message on the checkout page to notify EU customers about the impossibility to complete their order.

Custom base locations

  • Custom base locations: here, you can add country codes (comma separated) that will replace base location(s) specified in WooCommerce settings.
  • Country confirmation message: here, you can configure the message to show to EU customers when the IP address and the billing country do not match.

Disable VAT exemption

  • Show the VAT number field to users of the store’s registered country: if enabled, it shows the VAT number field to all EU customers even the ones coming from the same country as the shop base location.
  • Disable VAT exemption in same country: if activated, it disables VAT exemption in calculating totals for the same country.

 

VAT exemption

If you make B2B sales, you can show a field on the check-out page where businesses can validate VAT and be exempted from VAT at your store.

Through the option Disable VAT exemption in same country, you can choose whether to apply or not the VAT exemption for customers placing orders from the same country where your shop is located.

VAT exemption in same country

Companies from European countries you have enabled through the option Custom base locations for the VAT exemption can insert their VAT in the checkout page and, after validating the field, won’t pay the TAX for the order.

Custom base locations

VAT exemption on frontend

 

Country confirmation

If the country specified by the users differs from the IP address, the system will ask the user to confirm the country they inserted in the Country field of the Billing Address section.

Legally, you need two proofs to validate the VAT discount:

  • the country specified by the user belongs to the EU
  • the user confirmed is part of the EU

The related checkbox will be added to the end of the checkout process.

Country confirmation

The data are saved on the order page.

EU VAT order details

 

 

Enable VAT number in the same country

By default, if the user is part of the same country you specified as shop Base Location, the plugin doesn’t apply the VAT exemption.

Though, you can change this behavior by enabling the entry Enable VAT number in same country in the plugin settings dashboard.

Show VAT field

The system allows inserting additional base locations. Since the VAT applies if the user’s country is the same as the base location, you can extend this feature also to more than one country.

 

How to import standard and reduced tax rates

Before proceeding, verify you have enabled the tax calculation on your shop.

Enable taxes in WooCommerce settings

To set the taxes correctly, please refer to this page.

If you want to bypass the manual addition of the taxes, you can import all the standard and reduced, if needed, tax rates of the countries of the European Union with just one click.

Click on the button “Import standard tax rates” or “Import reduced tax rates” and the process will be automatic. It is necessary to select all the entries that have been created.

EU VAT tax rates import

 

One-Stop Shop (OSS)

The new European Union tax regulations, with the OSS procedure, establish two ways to apply VAT for companies selling products online within the European Union:

  • if the sale threshold is under €10,000 per year, it is possible to apply the store registered country’s VAT rules;
  • if the sale threshold is above €10,000 per year, the VAT applied will be the one of the customer’s country.

To apply the One-Stop Shop procedure, enable the option Enable OSS procedure that you can find in the General tab.

One-Stop Shop

To track the threshold of the current year, enable the option Monitor threshold for the current year.

For more details about the OSS rules, please, refer to the official website of the European Unione here.

OSS report

The plugin tracks all the B2C orders originated by the European Union countries (excluding the shop base country) with the total number of orders and the total amount of taxes for each one in detail.

You can access the OSS report in YITH -> EU VAT -> Reports.

OSS report

You can filter reports by current year, current month, last month, last 3 months, last 6 months, last year, or custom date ranges.

OSS report 2

From this section of the plugin, you can also export the reports into a CSV file by clicking on Export CSV.