Reverse charge and orders

We have introduced new feature for our customers from EU, who order for companies. If data provided during checkout shows that order can be fulfilled with reverse charge for VAT:

• delivery to EU country different than Poland
• there will be an invoice for company outside of Poland

On last stage, just before placing an order our system will show request to check tax ID in VIES database. This is required step:

In case tax id is active in VIES database You will get notification:

After reloading page, You will get quote with VAT removed:

Different outcome will be in case VIES service does not work (happens quite often, since VIES is dependent on services from each EU country to validate tax IDs). In that case You will see something like that:

Then You can reload page and try again. Usually VIES disruption lasts only few minutes.

There can be other option – VIES is working and tax ID you have provided is not active. Usually that means You have provided different tax id (most countries have different tax ids for use when purchasing in other EU countries). Just correct invoice data and try again.

There can be also some formal reason that tax id is not recognized and reverse charge invoice can’t be issued. If You need reverse charge invoice then first resolve issue in tax office of country which have issued tax id.

Summary

In case You will validate your tax ID during checkout our system will charge you only amount without VAT. This is best way to pay for order with invoice.

If You won’t validate ID we will do it later and in case reverse charge invoice can be issued we will do it and refund VAT amount (this was how it was working until now). Be advised that charge via PayPal or PayU are in PLN (Polish złoty) and during refund your bank will do exchange. We can’t guarantee you will get exact refund in your currency.