config-customer-configuration-create-new-account-options

Setting Up VAT ID Validation

Use the following tax rule examples when setting up VAT ID Validation for your store.

Example: Minimal Tax Rules Required for VAT ID Validation



Process Overview:
Step 1: Create VAT-Related Customer Groups
Step 2: Create VAT-Related Classes, Rates and Rules
Step 3: Enable and Configure VAT ID Validation
Step 4: Set your VAT ID and Location Country
Step 5: Verify the List of EU Member Countries

Step 1: Create VAT-Related Customer Groups

VAT ID Validation automatically assigns one of the four default customer groups to customers
according to VAT ID validation results:

  • Domestic
  • Intra-EU
  • Invalid VAT ID
  • Validation error

You can create new customer groups for VAT ID Validation or use existing groups, if they
comply with your business logic. When configuring VAT ID Validation, you must assign each
of the created customer groups as a default for customers with appropriate VAT ID validation
results.

Step 2: Create VAT-Related Classes, Rates, and Rules

Each tax rule is defined be three entities:

  • Customer Tax Classes
  • Product Tax Classes
  • Tax Rates

Create the tax rules that you need to use VAT ID Validation effectively.

  • Tax rules include tax rates and tax classes.
  • Tax classes are assigned to customer groups.

Step 3: Enable and Configure VAT ID Validation

1. On the Admin menu, select System > Configuration. Then in the panel on the left under
Customers, select Customer Configuration.
2. Set Current Configuration Scope to “Default Config,” or the applicable store view.
3. Click to expand the Create New Account Options section.

4. Set Enable Automatic Assignment to Customer Group to “Yes.”
5. To complete the fields, refer to the descriptions for Create New Account Options in the
Configuration reference.
6. When complete, click the Save Config button.

Step 4: Set Your VAT ID and Location Country

1. On the Admin menu, select System > Configuration.
2. In the panel on the left, under General, select General.
3. Set Current Configuration Scope to the applicable store view.
4. Click to expand the Store Information section. Then, do the following:

a. Select your Country.
b. Enter your VAT Number. Then, click the Validate VAT Number button.
5. When complete, click the Save Config button.

Step 5: Verify the List of EU Member Countries

1. Continuing in the General configuration section,
2. Verify that the Current Configuration Scope is set to the correct store view.
3. Click to expand the Countries Options section.

4. In the European Union Countries list, verify that each member country of the EU is selected.
5. When complete, click the Save Config button.

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