B2B Sales including reverse-charging VAT
One of the most requested features is live for PRO and PREMIUM shops: Business to Business Sales, including reverse-charging VAT! Starting today you can easily sell to businesses both in your home country and abroad. The VAT is automatically processed correctly.
What is B2B sales?
Business selling means that you can sell to companies, also known as B2B (business to business).
If you sell to a business customer (someone with a VAT number) from another country within the EU, he / she does not have to pay VAT. This is called VAT reverse charging, also known as an intra-Community delivery.
Reverse charging of VAT is automatically applied with the new B2B feature. So you no longer have to do this manually!
B2B Sales including VAT reverse charging is available for PRO and PREMIUM. PREMIUM users can also choose the option to only sell to businesses, which you explicitly exclude consumers. This can come in handy with large volumes and sales to wholesalers.
You can read more about the calculation of VAT on the website of the Dutch Tax Authorities.
How does it work?
Go to Modules and choose whether you want to sell to consumers and businesses (PRO and PREMIUM) or only to businesses (PREMIUM).
If you have a business order, the company name (required), VAT number and reference fields are shown in your checkout. Is your customer a foreign entrepreneur from another country in the EU? Then VAT is automatically transferred after he or she has entered a VAT number.
VAT reverse charging only works if your shop meets these conditions:
- You have entered a correct VAT number in Company details
- You have entered your country of residence
- The delivery address of your customer must deviate from your country of residence
Note: Mollie, Klarna via Mollie and AfterPay do not support business transactions. This is due to the credit check on companies. It is therefore not possible to settle a business order with these payment methods. If you use one of these methods, then offer at least one alternative payment method for your business customers.
It is important to know whether your customer is an entrepreneur. If you charge 0% VAT and if you check your administration that your customer is not an entrepreneur, you will receive an additional assessment. You must then still pay VAT on the goods that you have supplied without VAT. In Order details we indicate if we think it might not be a valid VAT number, based on the VIES (VAT Information Exchange System). But as a web retailer you are responsible for this. If in doubt, contact the customer.
Note: It can take 2-3 weeks for the VAT number of a new company to be known to the VIES.
We hope you’re happy with the new feature! :)