J2Commerce Documentation
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  • Welcome to J2Commerce
  • Getting Started
    • Introduction to J2Commerce
    • Getting started with J2Commerce
    • Technical Requirements
    • Installation
    • Update
    • Upgrade from FREE version to PRO version of J2Commerce
  • Migrating from J2Store 3 to 4 3 to 4
  • Set up
    • Content plugin settings
    • Configuration
    • Currency
    • Custom fields
    • Set up multi-currency
  • Quickstart guide
  • Product Types
    • Simple product
    • Variable product
    • Configurable product
    • Flexible variable product
    • Downloadable product
  • Layout
    • Products List View
    • Products Tag View
    • Usecases
    • Category Tree for displaying filters
    • Special module positions
  • Catalog
    • Assigning a product to multiple categories
    • Product Description
    • Short codes
    • Adding specifications to your products
    • Advanced Pricing
    • Setting up tax for your products
    • Options
      • Import product options
      • How to create options and add them to your products
    • Filters
      • Product filters
      • Translating filters to your language
    • Manufacturers
    • Vendors
    • Adding related products
    • Ordering products on your storefront
  • Subscriptions and Memberships
    • Introduction to subscriptions and memberships in J2Commerce
    • Quickstart
    • Requirements and Installation
    • Basic Settings
    • Creating subscription based products
    • Simple Subscription Product
    • Paypal Reference Transactions for Subscriptions
    • Usecases
    • Customizing the subscription mail templates
    • Frequently Asked Questions
  • Partial Payments
    • Introduction to Partial payments
    • Basic Settings
    • Setting up plans for Partial Payments
    • Instances
    • Usecases
  • Booking and Reservations
    • Limitation of the booking products type
    • Requirements and Installation
    • Basic settings and Booking Management
    • Booking and Reservations
    • Creating a Bookable Product
    • how to restrict multiple booking for a product person based restriction
    • Usecases
  • Localisation
  • Translation
    • Translate J2Commerce into your language
    • Setting up the store in your Language
    • How to write language override for plugin in multilingual site
    • Language overrides in Joomla with examples
    • Translating Product Options
  • Design
    • Email templates
    • Invoice Template (Pro Feature)
  • Tax configuration
    • Untitled
    • Recommended Tax configuration for US States
    • Recommended Tax configuration for Canadian Stores
    • Recommended Tax Configuration for EU stores
    • Setting up European VAT Rules for selling Physical Goods with J2store
    • A simplified guide for New EU VAT rules 2015 for digital goods and setting them up in J2Store
    • How Tax is Calculated
  • Easy Checkout
    • Easy checkout
    • Trouble shooting issues
  • Shipping methods
    • Free Shipping
      • How to create coupons for free shipping
    • How to set up local store pick up shipping method
    • Australia post shipping plugin
    • Bring shipping plugin
    • Canadapost shipping plugin
    • FedEx shipping plugin
    • Purolator
    • Postal Code shipping plugin
    • Royal Mail Shipping
    • Standard shipping methods
    • Table Rate Shipping
    • UPS Shipping
    • USPS Shipping
    • United States postal service Shipping Plugin
    • USPS Advanced
  • Payment Methods
    • AliPay Payment Plugin
    • Authorize.Net plugin
    • Bank Transfer
    • Barclays Payment plugin
    • Braintree payment plugin
    • Cash on Delivery
    • CardSave Payment plugin
    • CCAvenue payment plugin
    • CECA Payment
    • Checkout fi¨
    • Culqi Payment
    • DIBS payment plugin
    • Direcpay Payment Plugin
    • EBS Payment Plugin
    • Elavon Coverage/Virtual Merchant Payment Plugin
    • eway Payment Gateway for j2store
    • First Data Plugin
    • Flo2Cash for J2Store
    • GestPay
    • Heartland Payment Plugin
    • Icepay Payment Plugin
    • Interpay
    • Klarna Payment Plugin
    • Mollie payment plugin
    • Money Order
    • Moneris eselectplus Hosted Paypage
    • MultiSafe Payment Plugin
    • Nochex Payment Plugin
    • NMI Payment Gateway
    • Ogone Payment plugin
    • Pagseguro Payment plugin
    • Paybox Payment plugin
    • Payeezy
    • Payfast Payment plugin
    • Paygate Payment
    • Paymate
    • Paypal Sandbox
    • Paypal Adavnced Payment plugin
    • Payment Express for J2Store
    • Payment Sense
    • Paypal Express Checkout
    • Paypal payment plugin
    • Paypal Pro Payment Plugin
    • Payseal Payment Plugin
    • Paysera Payment Plugin
    • Payson Payment Plugin
    • Payson Invoice Payment Plugin
    • Pay U Latam
    • PayUMoney plugin
    • Poli Payment Plugin
    • Post Finance
    • QuickPay
    • Razorpay
    • Rabobank Omnikassa
    • RealEx Payment Plugin
    • Redsys/Servired/Sermepa Payment Plugin
    • Sagepay Form Payment Plugin
    • Secure Trading Plugin
    • Sepa Payment
    • Sisow Payment for J2Store
    • Skrill Payment Plugin
    • Sofort Banking
    • Stripe
    • Squareup Payments
    • Tranzila Payment Plugin
    • USAePay Payment Plugin
    • Voguepay Payment Plugin
    • Worldpay Payment Plugin
    • 2Checkout Plugin
  • Sales
    • Coupons
    • Vouchers
    • Customers
    • Orders
  • Report Sales
  • Modules
    • Product search module
    • J2store Detailed Cart
    • Product categories module
    • Product display module
  • Apps
    • Add to user group
    • Additional fee
    • Ask question / quote
    • Availability-notification
    • Bundled Products
    • Bulk discounts
    • Change Password
    • Checkout Redirect
    • Custom Tabs
    • Data validation
    • Donation
    • Drop-box
    • Email basket Plugin
      • Email basket issues
    • GDPR compliance
    • Google-analytics-ecommerce-tracking
    • Group Products
    • How to send download links through email notifications
    • Image Popup
    • Invoice Prefix Generator
    • Open hours (time based restriction)
    • Pay later/Pay against invoice
    • Points and Rewards
    • Re-Order
    • Shipstation
    • Simple CSV import and export tool
    • Tax Utilities
    • Upload file in checkout
    • Quantity dropdown
  • Frequently Asked Questions
    • Where can i find my sub-template
    • Products not aligned properly on list view
    • SCA support for payment plugins
    • To show the base price instead of price range in flexivariable products
    • Where do I add the CSS on my site
    • Unable to save the settings in any app
    • Difference between product types
    • Commonly found issues
    • Frequently Asked Questions
    • Quantity Restriction
  • Troubleshooting Guide
    • Products not visible on storefront
    • Cart not Working
    • Troubleshooting Cart related Issues
    • Moving the description
    • Troubleshooting Checkout Issues
    • Troubleshooting Common Issues
    • How to disable shipping address and payment in checkout
    • Joomla Article Error decoding json data
    • Troubleshooting Email Issues
    • Troubleshooting Paypal related Issues
    • Troubleshooting Product Display Module Issues
    • How to create a custom thank you message
    • Troubleshooting Shipping Issues
    • Troubleshooting Tax Issues
    • Troubleshooting Translate related Issues
  • Common Overrides
    • To add options to downloadable products
    • Moving additional image list to the left of the main image in product view page
    • To display the UPCE/BAN/ISBN on the product page
    • To Display Both the main Image and the additional image in the product view page
  • Video Tutorials
    • Quick Start
    • Catalog Management
    • Subscriptions
    • Booking and Reservation
    • Partial Payments
    • Tax
    • Shipping Methods
    • Discounts
    • Language
    • Apps
    • Email and Invoice Template
    • Checkout and Payment
    • Sales and Orders
    • J2Store CPanel
  • General
    • How to set cron job on your server
    • How to create an FTP account and super user account in Joomla
  • Developer Guide
    • Introduction
    • Queue System
    • App for J2store
    • Sub-templates
    • Creating an integration plugin for your component
    • Payment plugin
    • Templates
  • Canonical URL Plugin
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On this page
  • The VAT rules are:
  • Implementing VAT rules in J2Store
  • Store Profile
  • Geozone
  • Tax rate
  • Setting up the tax profile
  • Applying tax profile to a product
  • Implementation
  1. Tax configuration

Setting up European VAT Rules for selling Physical Goods with J2store

PreviousRecommended Tax Configuration for EU storesNextA simplified guide for New EU VAT rules 2015 for digital goods and setting them up in J2Store

Last updated 6 months ago

Setting up the European VAT system in J2Store 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, BristolAnd your home country (local ) VAT is 21 %.

Store Profile

Go to Joomla admin – J2Store – Set up – Configuration - > Store tab.

Set the Default Country to United Kingdom

Set your Default Zone to Bristol.

Geozone

Go to Joomla admin – J2Store – Localisation – Geozones – New

Geozone Name : VAT Zone ( It can be anything. It is used just as reference )State : Published

Add country / ZoneChoose United Kingdom from the Dropdown list and add it

** IMPORTANT: According to the rule, EU residents & businesses with no valid VAT number has to be charged based on the home country’s rate. **

(You can also add all other European countries. or create a separate geozone. But then you will have to create tax rate and map that in the tax profile. Kind of a double work!).

Save and close

Tax rate

Go to Joomla admin – J2Store – Localisation – Tax Rates – New

Name : VAT RateTax Percent : 21Geozone : VAT Zone

Status : Published

Setting up the tax profile

It is sufficient to set up ONE tax profile

Go to Joomla admin → J2Store – Localisation → Tax profiles → New

Tax Profile Name : My Tax ProfileState : Published

Tax Rates Mapping

  1. Choose VAT Rate 21 % and choose Billing Address as the Associated Address.

Save.

Applying tax profile to a product

J2Store uses native Joomla articles as products. So go ahead and create a product.

Go to Joomla admin – Article Manager – New or open your digital product.

In J2Store Tab → Item Tax , Choose My Tax Profile.

Fill in other relevant fields for your product and save.

Implementation

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

1. Store Profile

Go to Joomla admin – J2Store – Set up – Store Profiles - > Your store profile.

Set the Default Country to United KingdomSet your Default Zone to Bristol

2. Tax rule for Home Country

First, we should define the geozone and tax rates for the home country, that is the country in which your shop is located.

  • 2.1 Define Geozone

`

Go to Joomla admin – J2Store – Localization – Geozones – New Geozone Name: Home 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 Save and close

`Define Tax rate:

![vat 2015 home taxrate (./assets/images/vat_2015_home_taxrate.png)

Go to Joomla admin – J2Store – Localization – Tax Rates – New Name : Home VAT Rate Tax Percent : 21 Geozone : Home VAT Zone Status : Published

3. Tax rule for an EU Country

Let us take Germany for this example. Let us say, Germany’s VAT charge is: 25 %

NOTE: A few countries might have same VAT rate for the digital goods. You can group them under one geozone.For this example, I am going to stick with one EU country, that is Germany.

  • 3.1. Define Geozone`

  • 3.2. Define Tax rate:

Go to Joomla admin – J2Store – Localization – Geozones – New Geozone Name : Germany VAT Zone ( It can be anything. It is used just as reference ) State : Published Add country / Zone Choose Germany from the Dropdown list and add it NOTE: If some other EU countries also implement a 25 % VAT, then you can group them under this geozone itself Save and close

4. Setting up the tax profile

It is sufficient to set up ONE tax profile for digital goods, in which we can associate many tax rates.

`Go to Joomla admin → J2Store – Localization → Tax profiles → New

Tax Profile Name : Digital Goods Tax Profile State : Published

Tax Rates Mapping`

4.1. Choose Home VAT Rate 21 % and choose Billing Address as the Associated Address.

4.2. Choose the Germany VAT Rate 25 % and choose Billing Address as the Associated Address.

Save.

5. Applying tax profile to a product

J2Store uses native Joomla articles as products. So go ahead and create a product.

Application of VAT rules with Examples:Now we have successfully configured the tax rules in J2Store. Let us see how they will get applied for different scenarios

Example 1:

Buyer ( can be an INDIVIDUAL or company ) from the same country (Home country )

Our shop is located in United Kingdom. And the buyer is from the same country. So local tax of 21 percent applies.

Example 2:

Buyer ( INDIVIDUAL ) from a different EU country (Germany )

The buyer is from Germany and he is an Individual customer. So we are charging him the Germany’s VAT rate of 25 %

Example 3:

Buyer ( COMPANY ) from a different EU country WITHOUT a valid VAT Number

The customer is from Germany. He has entered a company name. But his VAT number is INVALID. So we apply the Germany’s VAT rate of 25 %.

(the EU VAT plugin validates the VAT number provided against the EU database )

Example 4:

Buyer ( COMPANY ) from a different EU country WITH a valid VAT Number

The customer is from Germany. His VAT number is VALID. So NO tax is applied.

** So it is advised that you add all the EU countries in this geozone itself. Choose EU Vat countries and add them. Refer this article to know all EU VAT countries. **

http://j2store.org/extensions/general-plugins.html
http://en.wikipedia.org/wiki/European_Union_value_added_tax