General information

From January 1, 2015, all digital goods purchased by a European customer are submitted to the VAT taxes of the purchaser rather than the shop’s country.

The VAT taxes are not charged in the cart of those European customers that have a valid VAT number registered in the Intrastat records, but the VAT number is stored together with the other purchase details in the order detail page.

These details are used to create the MOSS report (which we explain below).
This report collects all the orders made by customers with a valid VAT number registered in the Intrastat records and gathers them following the related countries, showing the number of orders per country and the overall amount of the UNPAID taxes.

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

Enable tax

After setting the taxes correctly as explained in this page, the plugin will automatically remove the VAT when:

  • the user is European
  • the VAT number is valid

By default, the VAT discount applies if the cart includes only digital goods. 

However, you can also apply the same action to physical products by enabling the entry Apply to physical products in the plugin settings dashboard.