Duties & Taxes (VAT/TAX)

VAT

VAT Exemption

This feature will allow Scalefast to verify a European company’s VAT identification and make sure they are eligible for VAT exemptions. We provide this feature in five languages which include English, Spanish, French, Italian, and German. At checkout, European B2B customers will be able to login with their company name and VAT ID.  If B2B customers are VAT exempted, then it will be applied in their cart before payment is processed.

After the VAT ID has been validated and saved at checkout, the account will change from B2C to B2B.  There you will also see the fields with Company Name, VAT ID, and Country.

In a case that the customer selects Edit and erases the VAT ID, the Company Name field would be deleted, and the Country field would become editable again.  If the customer erases the VAT ID and enters a new one, the VAT Validation process will initiate again.

Once the VAT ID is changed and Save has been selected, the following pop-up will appear if the VAT ID entered is not valid.

This area is where the customer can put their correct VAT ID, if it is correct, then the company name will automatically populate.  The Company Name field cannot be edited by the user.  The Update button will become available once the VAT ID is valid.  The option to Continue without company information will be available but will close the pop-up and fields to input Company Name and VAT ID if selected.

If the VAT ID is valid, after selecting the Update button, the account will change from B2C to B2B, and the information will be saved in the account details.  An automatic modification will correct any company name or country entered by the customer that is not the same as registered on the VIES API.  When this is done, the user will not have the ability to modify those fields unless the VAT ID is deleted.

If the customer selects Edit and erases the VAT ID, the Company Name field would delete as well but the Country field would be available for editing. Once Save is clicked, the account will change from B2B to B2C.

The Company Name and VAT ID are linked to the account information, you cannot input any Address or without Company Name and VAT ID. When editing, the only way to modify these fields would be in the Account Details, it will be bases on the type of account (either business or personal account). 

When the validation of the VAT ID has been processed and saved within the Account Details, the information will be displayed below the Billing Address section.  If that information needs editing, that function must be done in the Account Settings.

If an order was made and the VAT exemption was applied, it will be displayed under Order Details with a check-mark next to the VAT ID.

At checkout, if a customer signs in as B2C, they will have the opportunity to add the VAT ID by selecting the checkbox.  The customer can fill in the VAT ID field, if the number is invalid, the account will convert from B2C to B2B.

If the VAT ID is valid and the API contains the company’s address, that address will automatically pop-up as the Billing Address.  If the API does not include the company’s address, a text with “Reminder: This billing address must match the company address”.

If the VAT ID is already validated in the customers My Account section, it will be shown in the Payment section below the Billing information.  After selecting Save & Review Order, the system will validate the VAT ID again to verify if the company is still VAT Exempted. If the VAT ID is Exempt, the VAT value will change to $0.00.

 

Back Office View

When the customer accesses the Merchant Back Office and the account is VAT Exempted, the Company Name¸ VAT ID and VAT Exempt status will be filled out in the Billing Address section of the order and the tax value will be at $0.00.  The customers will also be added to the B2B group.

 

TAXES

TAX Exemption

For B2B customers in the United States, we will display a phone number where tax exempt customers can call for assistance by a sales agent, the sales agent will place the order over the phone using the Backoffice cart.

The sales agents will have to request all necessary documentation to complete the required fields and assure the customer is eligible for the tax exemption.  Once this process is done, the agents will need to select the Apply Tax Exemption checkbox located in the Billing section at the Checkout. The sales agents will have the ability to verify if the company is eligible for the tax exemption by adding the company information in the Backoffice.  If the customer is eligible for tax exemption, it will be applied by the tax engine.

In the Cart Summary, we recommend adding a tip tool next to the Taxes section with the following text:

  • “If your business or institution is tax exempt, we can remove it from our order- place call us at + 1 800.123.4567 for assistance.

The Company Name and Tax ID fields will be displayed, if the customer has the same Billing Address as the Shipping Address, they can select the check box to automatically input the address as well select the Apply Tax Exemption.  If the customer checks the Apply Tax Exemption option, the fields with the Company Name and Tax ID Number will appear.

If the customer selects the Tax Exempt but the choice for having the same shipping and billing address is unmarked, the billing form will appear with the fields empty.

After the input information is completed and the Apply Tax Exemption is selected, once the customer clicks on Save & Review Order, a pop-up will be displayed.  If the customer chooses Save ID, it will send them to a different page to set up a store account.  If the customer selects Continue Without Company Information, the pop-up will close and the Company Name and VAT ID fields will erase along with the removal of the tax exemption option.

If the order passes through the Tax Engine and if the company is eligible for tax exemption, the exemption will be applied to the order and set the tax value to $0.00.

The Back Office View

When the customer accesses Merchant Back Office and the account is Tax Exempted, the Company Name¸ TAX ID and Tax-Exempt status will be filled out in the Billing Address section of the order and the tax value will be at $0.00.  The customers will also be added to the B2B group.

If a sales agent wants to modify the Company Name and TAX ID, they can do so from the Customer Information section inside the Merchant Back Office. If the agent deletes the information from the account, it will then convert to a B2C account.

Once the account is Tax Exempted, the Back Office view will show the account as Tax Exempt Validated.

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