Setting up the European VAT system in K2Store is relatively easy. We have created a plugin that automatically validates the VAT number and helps you apply the rules.
This guide walks you through the tax configuration for EU.
The VAT rules are:
- Home country's residents & businesses are charged VAT (Home country's rate. That is, the rate defined by you in the Tax Profile)
- EU residents & businesses with no valid VAT number will be charged VAT (Home country's rate, That is, the rate defined by you in the Tax Profile)
- EU (Non Home country) and with a valid VAT number are charged 0% VAT
- Non EU residents & businesses are charged 0% VAT
Implementing VAT rules in J2Store
We have created a VAT plugin that helps you implement the VAT rules automatically.
Download and install the plugin from here:
Let us assume that your company is located in : United Kingdom, Bristol
And your home country (local ) VAT is 21 %
Go to Joomla admin – K2Store – Set up – Store Profiles - > Your store profile.
Set the Default Country to United Kingdom
Set your Default Zone to Bristol
Go to Joomla admin – K2Store – Localisation – Geozones – New
Geozone Name : VAT Zone ( It can be anything. It is used just as reference )
State : Published
Add country / Zone
Choose United Kingdom from the Dropdown list and add it
You can also add all other European countries. or create a separate geozone (If you create separate geozone, then you will have to create tax rate and map that in the tax profile).
Save and close
Go to Joomla admin – K2Store – Localisation – Tax Rates – New
Name : VAT Rate
Tax Percent : 21
Geozone : VAT Zone
Status : Published
Setting up the tax profile
It is sufficient to set up ONE tax profile
Go to Joomla admin → K2Store – Localisation → Tax profiles → New
Tax Profile Name : My Tax Profile
State : Published
Tax Rates Mapping
1. Choose VAT Rate 21 % and choose Billing Address as the Associated Address.
Applying tax profile to a product
K2Store uses K2 Items as products. So go ahead and create a product.
Go to Joomla admin – K2 - Items – New or open your product.
Go to Content Tab -> K2Store → Item Tax , Choose My Tax Profile.
Fill in other relevant fields for your product and save.