Article ID: 124001, created on Dec 21, 2014, last review on Dec 29, 2014

  • Applies to:
  • Odin Business Automation Standard

Starting from Jan 1st, 2015 a new EU regulation comes into effect which requires hosting companies to issue VAT based on the buyer’s residence country. Up till now the place of delivery has been defined as the vendor’s residence country, so, for instance, a Germany based service provider would include 19% VAT in their pricing. With the new regulation, service providers will have to be able to cover all the different VAT rates and use them according to buyer’s residence country. PBAS fully supports this requirement.

To enable support for this configuration:

  1. Create Tax Rates for each EU country (28 in total) under
    Billing Director > Taxation Manager > Tax Rates

  2. Create corresponding Tax Zones for each EU country under
    Billing Director > Taxation Manager > Tax Zones

    During the zone creation please set "Type of tax zone" to "Assigned to country/state" and then choose corresponding country and corresponding Tax Rate.

The following script can be used to automate creation of 28 Tax Rates: generate_tax_eu.pl

Usage instruction:

# perl generate_tax_eu.pl VENDOR_ID

(VENDOR_ID is the ID of Provider or Reseller for whom the Tax Rates will be generated.)

Rates added by the script are valid for December 2014. After they are added to PBAS, please verify if actual rates has changed and corrected them in PBAS interface if needed.

  • Note: open and overdue orders generated in 2014 but not paid until January 2015 should also be recreated in accordance with new EU regulations. To achieve that, please refer to our Knowledge Base article.

Search Words

tax rate

tax zone

EU regulations

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