Hello there, Currently I am trying to find a way to implement tax exemptions. I have found multiple discussions about this issue which is common in Europe. We want to sell from The Netherlands to Belgium. When we sell to other businesses there we do not have to charge the VAT (21%). This post brought me close:
http://ofbiz.135035.n4.nabble.com/German-store-with-vat-selling-to-europe-and-other-countries-without-Vat-tp4642750p4642752.html (especially the part after ‘secondly’), but it is still not working. While typing this e-mail I reproduced all my steps and even got a bit further ahead. The things I did so far: * I created two parties, the Dutch and Belgium tax authorities. I went to accounting->tax authorities to make them tax authorities within Ofbiz for the two beforementioned countries. I have set ‘require tax id for exemption’ to ‘N’ for testing purposes (want to make sure this is not the issue). * In the product rates tab for the Dutch authority (/accounting/control/EditTaxAuthorityRateProducts?taxAuthPartyId=BELASTINGDIENST&taxAuthGeoId=NED) I have added Value Added Taxes of 21% for each of my stores. * In the Parties tab (still of the Dutch tax authority) I connected the Belgium Party with ‘Is exempt’ set to ‘Y’. Still no luck, it keeps charging 21% VAT when I create an order within Ofbiz. Then I tried to connect the party to the Belgium tax authority and set ‘is exempt’ to ‘y’ as well. Now when I placed an order I got a really nice overview: Adjustment: Sales Tax Jurisdiction: Belgium [BEL] Rate: 21% Customer Tax ID: FODFINANCIEN Exempt Amount: 4.2 The grand total was still the original amount including VAT (20 euro’s in this case). It should have charged 16,53 euro while the exempt is 3,47 euro. So it seems to ignore the fact that the price includes VAT already. That seems to be the bigger issue. So some things I don’t get: * How come that it does something different when I connect the party to the Belgium tax authority (exempt=y) then to the Dutch authority (exempt=y)? * In the product pricing I can set the tax authority, tax rate and if prices include VAT (set to Y of course). Do I need to set that if I set the VAT percentage in the Tax Authority? I tried adding and removing it, didn’t make any difference. * How can I make sure prices are including taxes? I checked the store settings, but couldn’t find anything usefull there. The stores are connected to the Dutch tax authority. ‘Show prices with VAT tax included’ is set to ‘N’ but does not make any difference (seems to influence webshop only, but I’m not using Ofbiz for that). The only thing I’m not sure about is ‘Prorate Taxes’, I don’t know what it means since English is not my native language. Changing it did not make any difference though. * The difference between sales taxes and VAT within Ofbiz. Somehow it is now showing my VAT tax rules as ‘sales tax’ where it was VAT before. I like sales tax better since it is also showing in the grand total (as it should), but still I’m not sure why it switched from VAT to Salex tax when I was messing around with the tax authorities. Thank you for reading this far and hopefully someone can shed some light on the pricing/VAT system. It seems really powerfull, but I’m a bit lost. Best regards, Frank
