BILLmanager Documentation

VAT for the European Union


The module "VAT for the European Union" allows the billing system to comply with the tax policy of the European Union. The module supports the following functions: 

  • creates tax rates for the selected providers according to the current rates of the European Union;
  • adds the optional parameter "EU VAT-number" for "Company" and "Individual proprietor" payers.  The VAT-number will be automatically verified via a special service; 
  • adds the invoice template adjusted for payers from the EU.  

Installing and configuring the module 


Installing the module

To install the module, go to "Integration" → "Modules" → "VAT for the European Union" → click "Install":

Configuring parameters

The module allows you to set up the tax system for every provider. Navigate to  "Integration" → "Modules" → "VAT for the European Union" → click "Settings". 

The automatic configuration will perform the following operations:  

  • forbid clients to create payers with different statuses; 
  • every client can create only one payer "Company" or "Individual proprietor";
  • create tax rules for the selected provider according to the current rates of the European Union;
  • activate the "Does not include into price" option in the tax rules configuration form of the selected provider;
  • add the optional parameter "EU VAT-number" for "Company" and "Individual proprietor"  payers ;
  • create an invoice template adjusted for payers from the EU.  The template name is "EU credit". You need to select it in the payment method configuration form. The invoice will display only verified VAT-numbers. 

Note

Available in BILLmanager Corporate.

Configuring the module for one service provider will modify the principles of operation with payers for all providers.

How it works


Calculating VAT

When the billing system configures the service provider settings, it will create tax rates for all of the EU countries. For other countries, the system will set tax rates of the country where the provider is registered.

Note

The control panel administrator can change the tax rates that were set automatically in "Provider" → "Providers" → select a provider → click "Taxes".

Tax rate calculation rules:

  • for individuals (B2C services): the billing system will set the rate of the country which is specified in the actual address; 
  • for companies and sole proprietors (B2B services): the system will set the rate of the country which is specified in the legal address. If a client is registered as a VAT-taxpayer, has the VAT-number, and his registration country differs from the service provider country, the client won't have to pay taxes. BILLmanager will set the tax rate to 0% for such clients. The billing administrator can change the rate. Deleting or editing the VAT-number will not change the tax rate. 

Note

Changing the provider country will not affect the already created tax rates and rules for a remission of taxation.

Verifying VAT-number

The VAT-number specified by the client will be automatically verified. If the verification failed, a client will need to contact his provider via the ticketing system. The provider can verify his VAT-number manually and mark it as valid on the payer edit form.