(Digital products online: the nightmarish EU VAT regulation can be even worse with the wrong one)
Setting the checkout page of an online shop that sells digital products in compliance with the EU VAT tax regulation can be a real challenge.
The EU VAT regulation
As you may know, while selling on line an e-book, an image or a piece of software to a private you must add to the net price the VAT in force in the EU country the buyer resides in. Companies resident in an EU country other than the seller’s one may avoid the VAT by providing their VAT number that you, the seller, are obliged to check against the company name and IP address. Non-EU buyers, no matter if business or private, are exempted from this ordeal.
No, please don’t ask! It wasn’t me who made this law. Such a task isn’t really easy to face, and I personally haven’t a very high opinion of the bureaucrats that enacted it, but a law is a law is a law.
At first I was tempted to write directly the code to do this VAT juggling, but then, considering my always busy schedule, I resolved to look for a ready plugin to complete Vintage Nostalgia, my Easy Digital Downloads shop.
Of course I didn’t expect to find such a plugin for free: making it entails a lot of patience, time and toil.
Looking for a ready plugin
For the first one I run into the creators were demanding an exorbitant monthly fee, so I kept looking. And eventually, after some pondering, I opted for a more affordable one-time-purchase plugin and installed it.
The first doubts arose as I was faced with two pages fraught with mandatory settings accompanied by obscure and confusing explanations that weren’t of much help. I perused the documentation, run some tests… but alas! I had no way to really check the outcome as there was no way to simulate a sale abroad. Well, I thought, maybe it’s my IP address preventing me from simulating a sale in the US… and crossed my fingers hoping for the best.
Someone said that optmists have plenty of bad surprises: the whole thing blew up in my face as my first customer from New Zealand was charged a German VAT, and so the next one from Tasmania. What the heck???
I hastily put my shop on hold and started looking for a smarter alternative – and this time I found Barn2 EU VAT plugin More or less same price, extremely clear, exhaustive and properly written online documentation, smooth installation, just a couple of settings – and that was it.
Test and simulation were astonishingly easy, the customer support was friendly and competent.
And, as a most appreciated bonus, it would produce a detailed sales report to export in Excel.
No issues at all with the next sale in the US.
Thanks Barn2, I owe you a big fat breath of relief! As hopefully my readers will too 🙂