I have already checked the checkbox: Accept VAT numbers that cannot be validated due to server busy
The plugin still taxes 21% VAT to my Belgium customers…
Is this a known bug?
It’s not a bug with any plugin, but indeed the VIES API is slow at times, nothing to do about it but to reach out to the EU that provides it. (http://ec.europa.eu/taxation_customs/vies/technicalInformation.html)
Hi Jeroen,
I know the VIES is slow sometimes, but I have checked the checkbox: “Accept VAT numbers that cannot be validated due to server busy”.
Regardless of whether the VAT-number is correct or whether the VIES API is slow/down. It should apply 0% VAT (instead of 21% VAT) for my Belgium customers, if I have checked the option: “Accept VAT numbers that cannot be validated due to server busy”. Am I right?
Cheers,
Calvin
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This reply was modified 4 years, 6 months ago by
Konijntje.
Plugin Author
Diego
(@daigo75)
Hi Calvin,
I replied to your other email a few minutes ago, you should receive my message shortly.
For other readers
The issue you described is not caused by a bug. The option “Accept VAT numbers that cannot be validated due to server busy” mentioned looks for a specific response, which indicates that the remote server is busy (i.e. available, but busy). Any other condition (service unreachable, service unavailable, service returned an error, etc) return a different response, and will cause the VAT validation to fail, regardless of the checked option.
The Belgian service has been behaving erratically for a while, and it returns a “service unavailable” response, which is different from the “server busy”, to which the setting refers. Due to that, the EU VAT Assistant does what it’s supposed to, and doesn’t apply an exemption.
Workaround
If you wish to take the risk of accepting VAT numbers that could not be validated because the Belgian service is not available, you can do that with a simple filter. You can find more details in the following post: https://wordpress.org/support/topic/vat-numbers-from-specific-countries-cant-be-validated-workaround/
Important
As indicated in the post, the responsibility of applying the reverse charge rule correctly on intra-EU B2B transactions remains entirely on the merchant (i.e. you). If you choose to use the above code to apply a zero-rate VAT when a VAT number can’t be validated, you assume the risk of accepting invalid VAT numbers. Should that happen, it will be up to you to contact your local Revenue Authority and apply the necessary corrections.
I would never risk it. Otherwise, the 21% VAT is yours to pay if it turns out to be invalid and you could get issues with the tax authorities..
Plugin Author
Diego
(@daigo75)
@jeroenrotty that’s a key reason why the option to accept VAT numbers when the remote service is unavailable is not present in the EU VAT Assistant. We might add it in the future, but we think it would be too easy to enable it, perhaps by mistake, and then receive a complaint from the Revenue Office.
It’s annoying enough having to file papers when a VAT number becomes invalid mid-quarter (i.e. it’s valid at the time of an order, and no longer valid when the tax return is filed, because the company shut down). I would imagine that, in case of actual mistakes, the paperwork could be even more. 😀
@daigo75
Thank you for your fast reply!
The functions.php code snippet works smoothly..!
@jeroenrotty
I’m aware that I’m taking a tax risk. But it’s better than losing my Belgium customers. Once the Belgium Tax Service (VIES) API is available again, I will delete the code snippet.
btw. If a customer has bad intension, they can bypass the standard-VAT anyway just by copying a random VAT-number from the internet.
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This reply was modified 4 years, 6 months ago by Konijntje.
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This reply was modified 4 years, 6 months ago by Konijntje.
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This reply was modified 4 years, 6 months ago by Konijntje.
