Different Company VAT numbers on invoice based on customer location and type (B2B/B2C)

[NateRMN]

Hi,

We're a company based in Cyprus with OSS registration there, but ship from our warehouse in Slovenia (therefore we also have a Slovenian VAT number). Our tax advisors told us that we need to put different VAT numbers of our company on the invoices we issue, depending on the country of the buyer and whether they are B2B or B2C, because we're shipping from a country that's different to our home country (Cyprus).

Right now, Shopify puts our Cyprus VAT number on all invoices, but according to our tax advisor, this VAT number should only be used for EU B2C customers that aren't based in Slovenia. For all the rest of the cases (all B2B buyers, Slovenian and Outside-of-EU B2C buyers), our Slovenian VAT number needs to be written on our issued invoices.

Sufio isn't able to change seller's VAT number on these scenarios, Shopify support told me there's no option to do it through the Professional plan interface.

Does anyone have any other ideas how to solve this issue? 

I'd really appreciate any ideas, I'm totally frustrated with this setup. 😓

Thanks,
Nate
 

[Rostislav]

HI Nate,

There are some simple rules that you have to follow with B2B and B2C sales :

1. VAT always "follows" the goods. If you supply physical  goods from Slovenia (cross border and internally in Slovenia)  you need to use Slovenian VAT on the B2B invoices and for EU sales lists. If you supply anything from Cyprus - you need to put Cyprus VAT number on the invoice (and actually in both cases your B2B/B2C cross border sales will be shown on your domestic VAT reports as 0 VAT sales going abroad)    

2. You can use your OSS registration in Cyprus for intra communal B2C sales  for both Slovenian and Cyprus sales , but the OSS report still requires that you differentiate from which location you sold the items .  

3. Technically,  you may not need to use VAT number for  B2C sales invoice  (unless local regulations apply) , but the rule is the same - put the one that reflect the fulfillment location.  

Shopify is not the most accommodating environment for fiscal reporting.  I presume ( I do not know)  that your actual and only fulfillment place is Slovenia but the business is registered in Cyprus. if that is the case -change the address in Shopify and then all the fiscal data will be coming with Slovenian VAT number.   

[NateRMN]

Hi Rostislav,

Thanks for the answer! I am indeed fulfilling all orders from Slovenia, but we're registered as a business in Cyprus.

My tax advisor gave me these scenarios specifically:
- Sale to a private person in Slovenia --> Slovenian VAT number on invoice (Reporting to Slovenian Tax Authority)

- Sale to a private person in EU (not Slovenian) --> Cyprus VAT number on invoice (reporting to OSS)
- Sale to a non-EU private person --> Slovenian VAT number on invoice (Reporting to Slovenian Tax Authority)
- Sale to a Slovenian Company --> Slovenian VAT number on invoice (Reporting to Slovenian Tax Authority)
- Sale to an EU Company (not Slovenian) --> Slovenian VAT number on invoice (Reporting to Slovenian Tax Authority)
- Sale to a non-EU Company --> Slovenian VAT number on invoice (Reporting to Slovenian Tax Authority)

You wrote: change the address in Shopify and then all the fiscal data will be coming with Slovenian VAT number.   --> where in Shopify? The only place I find VATs is under "Taxes and Duties" where I've input both our VAT numbers in EU region (cyprus one is OSS), but with the current setup I still get only the Cyprus number on the Sufio-generated invoice. So are you suggesting I remove the Cyprus one altogether from there?



Really appreciate your help! You are the first one that seems to truly understand the issue, all the devs I spoke to don't.
Nate

[Rostislav]

HI Nate, 

Your tax advisor is generally correct: 

- Sale to a private person in Slovenia --> Slovenian VAT number on invoice (Reporting to Slovenian Tax Authority),  - correct 

- Sale to a private person in EU (not Slovenian) --> Cyprus VAT number on invoice (reporting to OSS) -  It depend on your OSS registration. You may use OSS either in  Cyprus or Slovenia , and there is no obligation for B2C  invoicing , unless there is national requirement in Cyprus or Slovenia. But even if you are registered for OSS in Cyprus, you need to report intra-communal distance sales also in your Slovenia VAT report (cross border EU sales with 0 VAT, export ).       
- Sale to a non-EU private person --> Slovenian VAT number on invoice (Reporting to Slovenian Tax Authority) -correct , domestic VAT report , export 0 VAT) , invoicing is not mandatory from EU taxation point of view, unless local requirements apply. But it is always prudent to issue an invoice.  
- Sale to a Slovenian Company --> Slovenian VAT number on invoice (Reporting to Slovenian Tax Authority)- correct , domestic VAT report, Slovenian VAT is to charged 
- Sale to an EU Company (not Slovenian) --> Slovenian VAT number on invoice (Reporting to Slovenian Tax Authority) -  correct , domestic VAT report  (reverse charge,  0 VAT), EU sales list  

- Sale to a non-EU Company --> Slovenian VAT number on invoice (Reporting to Slovenian Tax Authority), - correct , invoicing is a general requirement , domestic VAT report (export 0 VAT) 

Whatever sale you make it should be shown on the Slovenian VAT report either as a domestic (B2C or B2B) or cross border B2B/B2C sale (there many be many entry lines in the report - intra-community sales ,export etc.) 

I do not remember where Sufio takes the data from - there might be settings for that on Sufio side , so do try to check it there first of all  

Of it is not there , then you are correct about the Shopify for the tax number (it is the only place where it is kept by Shopify ) 

and you can try to change store address here : 

But first check Sufio settings 

Yours, 

Rostislav 

[Rostislav · Accepted solution]

HI Nate, 

One more thing. You said you are registered for OSS in Cyprus. I would suggest that you change the OSS registration to Slovenia - it is more consistent with your situation . 

[NateRMN]

Thanks Rostislav, I really appreciate your help!

We'll check the option to change OSS to Slovenia, but we did manage to find a solution in the meantime with the great support from Sufio. We basically got the right information to our invoices with a series of "IF" clauses for different country/customer type scenarios. Since Shopify actually charged the right VAT rates as per our setup, the only issue was getting our company's right VAT number on the invoices, which worked with some custom code on Sufio side.

All the best!

Nate