Setting up European VAT for physical goods in K2Store

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:
http://k2store.org/extensions/modules/item/93-european-vat.html

Let us assume that your company is located in : United Kingdom, Bristol
And your home country (local ) VAT is 21 %

Store Profile

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

Geozone

    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

Tax rate

    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.

Save.

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.