• Tax Rule #1
  Customer Tax Class	Customer tax classes must include: A class for domestic customers A class for customers with invalid VAT ID A class for customers, for whom VAT ID validation failed
  Product Tax Class	Product tax classes must include a class for products of all types, except bundle and virtual.
  Tax Rate	The tax rate must include the VAT rate of the merchant’s country.

• Tax Rule #2
  Customer Tax Class	A class for intra-union customers.
  Product Tax Class	A class for products of all types, except virtual.
  Tax Rate	VAT rates for all EU countries, except merchant’s country. Currently this rate is 0%.

• Tax Rule #3 (Required for virtual and Downloadable products)
  Customer Tax Class	Customer tax classes must include: A class for domestic customers A class for customers with invalid VAT ID A class for customers, for whom VAT ID validation failed
  Product Tax Class	A class for virtual products.
  Tax Rate	VAT rate of the merchant’s country.

• Tax Rule #4 (Required for virtual and Downloadable products)
  Customer Tax Class	A class for intra-union customers.
  Product Tax Class	A class for virtual products.
  Tax Rate	VAT rates for all EU countries, except merchant’s country. Currently this rate is 0%.

VAT ID Validation automatically assigns one of the four default customer groups to customers according to VAT ID validation results:

• Domestic
• Intra-EU
• Invalid VAT ID
• Validation error

You can create new customer groups for VAT ID Validation or use existing groups, if they comply with your business logic. When configuring VAT ID Validation, you must assign each of the created customer groups as a default for customers with appropriate VAT ID validation results.

Each tax rule is defined be three entities:

• Customer Tax Classes
• Product Tax Classes
• Tax Rates

Create the tax rules that you need to use VAT ID Validation effectively.

• Tax rules include tax rates and tax classes.
• Tax classes are assigned to customer groups.

1.

On the Admin menu, select System > Configuration. Then in the panel on the left under Customers, select Customer Configuration.

2.

Set Current Configuration Scope to “Default Config,” or the applicable store view.

3.

Click to expand the Create New Account Options section.

4.

Set Enable Automatic Assignment to Customer Group to “Yes.”

5.

To complete the fields, refer to the descriptions for Create New Account Options in the Configuration reference.

6.

When complete, click the Save Config button.

1.

On the Admin menu, select System > Configuration.

2.

In the panel on the left, under General, select General.

3.

Set Current Configuration Scope to the applicable store view.

4.

Click to expand the Store Information section. Then, do the following:

a.

Select your Country.

b.

Enter your VAT Number. Then, click the Validate VAT Number button.

5.

When complete, click the Save Config button.

1.

Continuing in the General configuration section,

2.

Verify that the Current Configuration Scope is set to the correct store view.

3.

Click to expand the Countries Options section.

4.

In the European Union Countries list, verify that each member country of the EU is selected.

5.

When complete, click the Save Config button.