With the new year 2015 comes into force a new regulations of the European Union, that requires companies to sell digital goods through the Internet to apply the VAT of the buyer's country of origin and not the VAT of the country where the online store has its fiscal residence, which is already known as the Rate Amazon ]
Therefore, in case we have an online store we will have to adapt to the new regulations to avoid an upset in the form of a fine .
Here we will see how to make this configuration in WooCommerce one of the most popular plugins to have an online store in WordPress. The procedure will be as follows:
First of all we will go in the WordPress administration menu to WooCommerce-> Settings . We will enter in this way in the configuration of WooCommerce . Click on the tab Taxes .
In the field Calculate taxes based on select the option " Customer shipping address ". It should be clarified here that this new law says that there will be to apply the VAT of the country of habitual residence of the buyer which does not make it very clear if we have to choose the previous parameter or the option " Customer Billing Address ". I think the shipping address is the best option. We save the changes.
In the field Default client address we can select the default address so that WooCommerce can apply taxes from this address until the client identifies. Choosing the option " Without address " no tax will apply.
Now click on the link Standard Rates shown at the top of this page . Here we can add the different taxes for each of the countries of the European Union. We even have the option to put different taxes per province (for example, for the Canary Islands, Ceuta and Melilla). You just have to press the button Insert row to add the tax for each country.
Once this is done we will have to make sure that we are applying this " Standard Rate " to the products of our store. For this we edit the products. In the section Product information activate the tab General . In the parameter Tax type we will have to select the option " Standard ".
In this way, once the user make the purchase in our online store select a shipping address, taxes will be recalculated automatically to apply the corresponding to this shipping area.