rubyonrailsin

Roughly speaking VAT in the UK requires "full disclosure", ie you need
to state the VAT rate that applies to *each line item* and break out the
VAT from the grand-total at the bottom of the invoice.

There are some special cases worth being aware of:

- If you are converting currency then in the UK the VAT is calculated
using a prescribed rate that is given in advance, ie it will not be a
straightforward X% of either the unconverted or the converted figure

- For business to business across the euro-zone you usually zero rate
the transaction, but you need to declare these transactions *completely*
at the end of the quarter. So you need to present a complete list of
all business to business transactions, net amount and the VAT number of
the other business. This is hotting up and we now need to present it
within days of the end of the quarter and shortly it may be required to
present this *monthly* once you hit a certain turnover - this is quite
an onerous proposition without support from the software...

- Other than that VAT is fairly straightforward in most of Europe. It
can be summarised (for physical goods) as: if you ship around the
eurozone then you charge VAT, if you ship outside then you don't. There
are some exceptions such as business to business, but that probably
covers the majority of transactions.

Just some thoughts

Ed W

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