Having an invoicing system is one of these things you don’t want to think about every day. You just need everything to work well. Flexible Invoices for WooCommerce is a plugin that has already allowed issuing invoices but now you may generate invoices in WooCommerce for EU customers as well. We have added new functionalities to it, adjusting invoicing in WooCommerce to the existing EU law.
Invoices in WooCommerce for EU clients – In brief
The Flexible Invoices for WooCommerce plugin is adapted to EU regulations. Now you can easily issue invoices for customers from any other European Union countries! The plugin offers a comprehensive solution ready for quick use out of the box. So, you do not need to install other paid plugins such as EU VAT Number. Read how to create, download, email & print an invoice in WordPress & WooCommerce.
And also How to set up tax rates in WooCommerce for EU invoices?.
Here are the improvements you can find and use in Flexible Invoices for WooCommerce:
- OSS Handling (formerly MOSS),
- Reverse charge description on invoices,
- Currency exchange table,
- Exchange rates from the European Central Bank,
- Validation of the VAT number in the VIES database.
Company accounting in the EU
From the company’s point of view, acting within the European Union requires to be following a series of regulations and conditions that must be met. It is no different in the case of invoicing and documenting transactions with contractors from the European Union. A valid invoice is very important for each side of the transaction.
One of the most important issues, when selling products and providing services abroad, is determining the country where VAT should be settled. It’s about calculating tax amounts correctly, showing VAT rates on and an invoice, and placing additional specific data on invoices. This is a part of the WooCommerce VAT OSS (MOSS) invoice requirements. You can read about it below.
OSS handling (formerly MOSS)
From 2015, VAT on digital goods (and other telecommunication, broadcasting, or electronic services) is usually charged in the country of which the customer is a resident (who is not a VAT taxpayer). Sometimes when placing an order, the address provided by the customer is different from one that is suggested by the customer’s current IP address location. Therefore, you can additionally allow the customer to confirm his/her address to apply and add the proper VAT tax rate for that given country.
You can read more about issuing a OSS VAT invoice on the page of the European Commission.
Our plugin will allow you to issue invoices with the appropriate VAT rate based on the customer’s country. By default, in WooCommerce you can configure tax rates. Read more about this in the How to configure WooCommerce Taxes Complete Tutorial.
However, if we apply the OSS invoice requirements & rules and the foreign company is obliged to settle the tax, then the invoice does not specify the tax amount or its rate. The most common solution, in that case, is to include an annotation to an invoice – i.e. not taxable. There should also be information about the reverse charge procedure placed on an invoice for such an order.
Invoicing in WooCommerce for business clients from EU example
Reverse charge description on invoices
If you sell for business customers, the transaction will be settled using the reverse charge rule. You need to add on an invoice the EU VAT number of your business client who declares that number when placing an order. In this case, the invoice should not include VAT though.
By default, WooCommerce does not know when to apply for VAT exemption. But it is possible with the Flexible Invoices for WooCommerce plugin setup, like on the screenshot below:
See instructions for all settings of the Flexible Invoices for WooCommerce plugin. You will find there also those related to the adaptation with EU regulations.
Conversion of VAT into local currency
Did you know that you need to convert VAT into your currency when issuing an invoice in another currency? With Flexible Invoices for WooCommerce, you can do that with ease. Furthermore, the automatic download of the exchange rate from the European Central Bank will speed up the process of invoicing.
Invoices in a currency other than the WooCommerce store’s default and with specified VAT may use the new function. It is about the conversion table on the invoice. Here’s what that kind of invoice will look like:
Exchange rates from the European Central Bank
With the Flexible Invoices for WooCommerce plugin, you can enable displaying a conversion table on an invoice of VAT tax rates, net amounts, the amount of VAT, and gross amount in the main currency of the store. What is most important, the exchange rate will be taken directly from the European Central Bank on the day preceding the sale.
Additionally, you can set a different conversion date to be used when editing an invoice directly. After saving the changes, the edited values will appear on the invoice.
Validation of the EU VAT number in the VIES database
Invoices in WooCommerce for an EU business client should also include/ add the buyer’s EU VAT number. The Flexible Invoices plugin adds the EU VAT number field in the checkout and validates the EU VAT number in the VIES database.
Here you can find an article about Adding a VAT Number Field in WooCommerce.
With Flexible Invoices for WooCommerce, the EU VAT field is added by the plugin when a client asks for an invoice at a checkout form. When the EU VAT number is filled up at checkout, the plugin checks the given number in the European VIES system. In the absence of an active number, it’s also possible to choose a specific further action. Furthermore, you can choose if the plugin shall:
- Allow the customer to place the order. VAT will not be removed from the order
- Allow the order to be placed, but remove VAT from it
- Not allow the order to be placed and display an error message:
Flexible Invoices for WooCommerce adjusted to EU customers and regulations – summary
Running a business and online store is fascinating when you don’t have to deal with accounting matters 🙂 You shouldn’t also spend hours solving the accountant issues.
Our plugin will speed up invoicing and simplify things that seem complicated. The correct setting of the plugin is easy, sometimes it is only checking one additional option. Not to mention, getting exchange rates directly from the ECB, verifying the customer’s EU VAT number in VIES & automatic OSS/ MOSS invoice handling. These new features will certainly save much of your time. What is more, you will also be sure that invoices for your foreign customers will be issued correctly.
If you want to test the Flexible Invoices for WooCommerce plugin for EU clients before purchasing it. You may use our free demo.
Also check out the plugin page, where you can find even more information about its features.
If you want to read more about the plugin, read the article on How to create, download, email & print an invoice in WordPress & WooCommerce. Start with the free version. Then upgrade to PRO to have also VAT validation & OSS (MOSS) support for EU customers in one plugin.
And if you have any questions, do not hesitate to email us!
The Flexible Invoices for WooCommerce plugin is the PRO version of Flexible Invoices for WooCommerce and WordPress. Start using the free version and decide if you need more functions later.
Also, read How to Configure WooCommerce Taxes a Complete Tutorial. I hope it will be useful for you.
