Equivalence surcharge in WooCommerce, WordPress online store

All countries have their tax peculiarities, and in Spain there is the so-called equivalence surcharge, a special type of VAT ]which sometimes you should consider in your online store, so let's see how to apply the equivalence surcharge in WooCommerce .

What is the equivalence surcharge

equivalence surcharge is a special VAT regime, mandatory for retailers who sell finished products directly to the final customer so it is not something that applies to a few users, but to any retail ecommerce.

applies to both autonomous and community property.

What are the advantages and disadvantages of the equivalence surcharge

  • ? As a simplified way to pay VAT, its main advantage is that you should not perform VAT declaration or carry VAT book like the other self-employed .
  • You do not have to issue invoices to your customers, only cash receipt or order confirmations, unless they expressly request it. In any case you do not have to declare VAT equally.

Now, its main disadvantage or disadvantage is that, in compensation of not having to make a VAT declaration you have to pay more VAT .

Who should not apply the equivalence surcharge

Seen the above, almost more than who applies should we say to whom the equivalence surcharge does not apply :

Does not apply to retailers, natural persons or entities under the regime of income attribution in the Income Tax of Individuals (civil companies that do not have a mercantile purpose, recumbent legacies or communities of goods when all their partners, co-owners or participants are natural persons) who sell the following products:

  1. Services.
  2. Wholesale trade.
  3. Industrial activities in general.
  4. Motor-driven vehicles for driving on roads and their trailers. [1 9659009] Ships and ships
  5. Airplanes, light aircraft, sailboats and other aircraft
  6. Accessories and spare parts for means of transport included in the preceding numbers.
  7. Jewelery, jewels, precious stones, natural pearls or cultivated, objects made totally or partially with gold or platinum. Fine jewelery containing precious stones, natural pearls or the aforementioned metals, even in the form of bathed or plated, unless the content of gold or platinum has a thickness of less than 35 microns.
  8. Articles of clothing or made-up personal adornment with skins of luxury character. Except as provided in this number, bags, purses and similar objects, as well as garments made exclusively with scraps or waste, heads, legs, tails, trimmings, etc., or with ordinary or imitation leather.
  9. of original art, antiques and collectibles defined in article 136 of the VAT Law.
  10. Goods that have been used by the transferor or by third parties prior to their transfer.
  11. Apparatus and accessories for the poultry farming and beekeeping
  12. Petroleum products whose manufacture, import or sale is subject to Special Taxes.
  13. Machinery for industrial use.
  14. Materials and articles for construction of buildings or developments.
  15. Minerals, except coal.
  16. Irons, steels and other metals and their alloys, not manufactured.
  17. Investment gold defined in article 140 of the VAT Law. [19659032] How the equivalence surcharge applies to billing

    The retail merchant with an equivalence surcharge scheme does not have to invoice in any special way to its final customers.

    Simply applies the VAT

    However the thing changes at the time of making the payments, since the supplier will charge the retailer VAT invoice plus the equivalence surcharge established on the basis of a official table

    Types of equivalence surcharges

    The types of equivalence surcharges for each type of VAT are as follows:

    • 5.2% for articles that have a VAT at the general rate of 21%.
    • 1.4% for articles that have a VAT at the reduced rate of 10%.
    • 0.5% for articles that have a VAT at the reduced rate of 4%.
    • 0.75% for tobacco

    Knowing this, a wholesale merchant will create the invoice to the retailer applying the VAT and then the equivalence surcharge.

    Example:

    • Product price = € 1,000
    • + VAT 21% = € 1,210
    • + RE 5,2 % = 1.273 €

    How to apply the equivalence surcharge in WooCommerce

    If you have understood all of the above, if you are retailing that you sell to final customer you can receive invoices with equivalence surcharge from your suppliers, but this does not affect your products that you sell to your customers, which you will bill as usual with the corresponding VAT.

    What's more, you do not even have to invoice customers it's worth with the proof of the order, precisely for using the equivalence surcharge. However, if any customer asks for an invoice you can do it without problem, you will still not have to make the VAT declaration.

    Now, if you are a wholesaler and you serve your ecommerce to customers under this special regime of the equivalence surcharge then yes you will have to charge them and invoice them with the corresponding equivalency surcharge in WooCommerce .

    If all your customers are retailers with equivalence surcharge it is very easy to configure WooCommerce to sell them online

    Simply when you create a tax add a second line with the equivalence surcharge corresponding to that VAT rate, based on the table we saw earlier.

    Now well, if you have a mixed customer typology in which, either not all are retailers, but you also sell to end customer, or even being retailers are not all n welcome to the equivalence surcharge you have a problem .

    The problem is that WooCommerce applies taxes by zones, not by type of user which is what you need. ] Equivalence surcharge in WooCommerce with code

    One way to apply it would be the following:

    1. You create a new user profile, with the Members plugin for example, with the slug clienteconre .
    2. You create the new tax in the WooCommerce settings as we have seen before and name it, for example, RE .
    3. Add the following code to your customizations plugin or mu-plugin .

    What the code does is check if the user who is making the purchase has the profile clienteconre and in the affirmative case it automatically applies the tax with equivalence surcharge that we configure in the settings.

    Equivalence surcharge plugins for WooCommerce

    To solve it, the best thing is to use plugins and that I know only there is one free.

    It is precisely called WooCommerce Equivalence Surcharge from @josesan which in addition is free .

    Once installed you have to create your taxes as always, some with an equivalence surcharge and others without surcharge of equivalence. So far easy.

    The trick is:

    1. Create a new user profile named, for example, client with re or retail client whatever you want . You can do it with the Members plugin one of my favorites.
    2. In the plugin settings, associates the user options and vat type with the newly created user profile and the special taxes created .

     equivalence surcharge on woocommerce

    Then, when a customer is a retailer you will have to change the profile . So also in these cases the plugin must be accompanied by a procedure, by which the user has to register before buying if you are a retailer by form, direct or as you decide.

    As you may have seen the strategy is not simple, but at least we have the option, and it is totally operative, and the plugin free .

    Other plugins

    There are other plugins for the equivalence surcharge in WooCommerce , but I have not been able to prove them yet (unless the authors give me a license to the effect to compare them), these:

    The strategy of these plugins is different, since is the client who chooses at the time of registration / purchase if you have to apply the equivalence surcharge or not.

    If you know of any other method, or have tried any of the above, you tell us in the comments.

    Loading …

    That may also help you: