Surely this should be simple! My client sells physical products to customers all over the world. There are three tax scenarios:
1. EU B2C customers (20% tax)
- All orders from EU countries are set to collect 20% tax in settings/taxes
- When exporting orders to CSV: column BI 'Tax 1 Name' = VAT 20%
- Xero needs to record invoice line items with the tax rate = '20% (Vat on Income)'
2. EU B2B customers (no tax)
- We use Exemptify app to let EU customers enter a VAT ID number. If valid, Exemptify correctly sets the taxes on the order to zero. It also creates an entry in the order note and note attribute
- When exporting orders to CSV: column k 'Taxes' = 0, column BI 'Tax 1 Name' = empty, column AT 'Note Attributes' contains a valid tax ID (e.g 'vat-id: BG205101119')
- Xero needs to record invoice line items with the tax rate = 'Zero Rated EC Goods Income'
3. Outside the EU (no tax)
- When exporting orders to CSV: column k 'Taxes' = 0, column BI 'Tax 1 Name' = empty, column AT 'Note Attributes' = empty
- Xero needs to record invoice line items with the tax rate = 'Zero Rated Income'
Every store owner using Xero that sells products to EU countries needs to automate and apply this. How is it usually done? What is the best App?