Czech Republic - Taxes

[XM4N]

I change VAT info. From 1.1.2012 now is like down:

VAT in the Czech Republic is 20%(HW,SW,etc). For some products (food,books,etc..) VAT is 14% (this is changed from 10% which was from 1.1.2010 to 31.12.2011).

This also applies to the EU. Outside the EU, goods are exempt from tax.

Trade goods between EU partners registered for VAT goods are not charged tax.

 

Old-post:

For tax purposes, in PrestaShop is inconvenient invoice, because it must contain:

Date of Issuance

Date of delivery

Due Date

For freelancers and companies invoice must still include:

Company Registration Number

VAT identification number

Other elements are compatibile.

The Law on VAT verbatim writes the invoice must contain:

a) the name and address of the residence, place of business or establishment payer who supplies goods or services, and tax identification number,

the name and address of the residence, place of business or establishment or residence of the recipient of goods or services and its tax identification number, if it is assigned,

c) the serial number of the invoice

d) the date when the goods or services delivered or the date when payment was received under paragraph 1 if that date can be determined and differs from the date of issue;

e) the date of issue;

f) the quantity and type of goods supplied or the extent and type of service delivered,

g) the tax base, the unit price, excluding tax and discounts and rebates, if not contained in the unit price,

h) the tax rate or an indication of the exemption,

i) the total amount of taxes in CZK (Czech crown).

I suppose the problem is similar in other EU countries, because we often have corporate customers.

[Ripe]

These informations are based on Prestashop 1.4.3.0

Most taxes and laws are compatible (or can be easily configured) for Czech Republic in this version of Prestashop, but need very few modifications. Here it is.

Merchants (shop owners):

Every shop owner must must be registered in Czech Commercial Registry and must have valid business id number. So it would be nice to have have a field in Preferences - Contact Information Tab to enter it and another field in the same Tab to enter a VAT number for merchants whose must pay VAT (not every merchant must pay VAT). This or these numbers must be printed on every invoice in the Headquarters section below the merchants address. If that fields are blank, simply don't print enything, so international compatibility will be achieved. Business id is used also in other countries, for example Poland, United Kingdom, Slovakia and may be others.

Customers:

For B2B selling, customer must provide his business id. So it would be nice to have a field on registration and addresses in Front office to enter it. I think it should be configurable and with similar behavior as VAT module (without validation a number) including PDF printing. This will achieve compatibility with countries, that don't use it.

That's all.

Have a nice day

[XM4N]

small change

[Blux]

Could you please implement correct VAT for the Czech Republic in final version of Prestashop 1.5 ? Prestashop 1.5 RC 2 (v1.5.0.15) has still VAT which was valid in years 2010 - 2011. VAT in the Czech republic from 1.1.2012 is 20% standard rate and 14% reduced rate (foods, books).

 

http://en.wikipedia.org/wiki/Value_added_tax#EU_countries

[tuk66]

The standard VAT rate in the Czech Republic is 21% since 1 January 2013. There is a reduced rate of 14% on food, books and the supply of some services.

[tomas.jukl]

According to requirements given by Czech laws, the VAT must be calculated from so called "VAT base". VAT base is a total sum of prices excl.tax of all products and/or services written in the invoice which belong to the tax rate.

 

VAT_base = SUM_all_products_on_invoice(product_price_tax_excl * product_quantity)

VAT = VAT_base * (tax_rate_in_percent / 100)

 

 

The critical point to current and also previous versions of PrestaShop is, that it calculates and rounds VAT for each product on invoice separately and then it sums up these partial VATs to total VAT. This creates a mistake in calculation, while the only mathematically correct way is to sum all bases, calculate VAT and only then round.

 

Rounding can only be done at the very end of calculation.

The calculation procedure by PrestaShop is a total mess...