magento:euvat:settings:customergroups

Using EuVat with Customer Groups

If you need to use Customer Groups for other purposes, like Customer Pricing or other Sales Rules, then you need to use the configuration with Customer Tax Classes as documented here...

1. Create Customer Tax Classes

The Customer Tax Classes are the link between the Customer Group and the Tax Rate determined by the Tax Rules. Create 4 different Customer Tax Classes, which later will be assigned to your customers according to their EuVat status:

  • One for customers in the stores home country.
  • One for customers identified as EU Businesses (with validated EU VAT ID).
  • One for customers identified as EU Enduser/Consumer (or EU Business where the EU VAT ID did not validate).
  • One for customers outside of the EU.


Sales » Tax » Customer Tax Classes


2. Create Customer Groups

EuVat is automatically assigning each customer to one of three Customer Groups, to allow differentiation in the Tax Calculation of each order based on the customers group later automatically being assigned to.

Create 4 different Customer Groups similar to or as shown here:

  • One for Customers of your Stores Default (Home) Country
  • One for Customers identified as EU Business (Billing Country is a EU Member Country and a valid VAT number is entered as Tax/VAT Identification)
  • One for Customers identified as EU Enduser (Billing Country is a EU Member Country and a invalid or none VAT number is entered as Tax/VAT Identificaiton)
  • One for Customers identifies as International Customers (Billing Country is outside of the EU)


Customer » Customer Groups


EuVat is assigning or updating each customers Customer Group during this store activites:

  • Create a Account (Frontend)
  • Edit a Account (Frontend)
  • Onepage Checkout, with a new Registration during checkout (Frontend)


In case you are allowing additional interactions for customers with their Account Address, or use a different Checkout Method other than the default Magento Onepage Checkout, you may need to add code to your Magento Store.

If EuVat is unable to detect where to assign the current customer to, the customer is assigned to the Default Group as set for in the Create New Account Options:

System » Configuration » Customer Configuration » Create New Account Options



If you want to use a Default Customer Group other from the customer groups created for EuVAT, then you need to set the related Customer Tax Class for that default customer group to the Tax Class used for the Store Home Country.



3. Create Tax Rates

For basic operation of your Shop with EuVat only 2 Tax Rates are sufficient, one with the applicable VAT and one without VAT. Create the two Tax Rates in your store, see this example for the Tax Rates applicable for a store in Austria:

Sales » Tax » Manage Tax Zones & Rates


You may also create any other Tax Rates and Rules in your shop, using the Customer Groups EuVat is using for customer classification, as required by your countries regulations or shop functions.

4. Create or Update your Tax Rules

Now assign Tax Rules for the different Customer Groups, their Customer Tax Class and maybe also Product Groups. Create the Tax Rules such that for all EU-Consumers the Tax Rate of your country is applied, as well as for all customers of your Stores Default Country. And such that all other Customer Groups EuVat shall use are Tax excempt:

Sales » Tax » Manage Tax Rules


Please use a different “Priority” for each of the Tax Rules being prepared for EuVAT, to prevent Magento from combining tax rates at is own logic.



When using EuVAT per default only the Tax Rules as seen out of the country of your store are required.

So for our example as shown above:

For Austria the rules for online business are (in line with the related EU Regulation):
  • Charge 20% VAT to any order from a Customer with his Billing Address in Austria (regardless if Enduser or Business)
  • Charge 20% VAT to any order from a Enduser with his Billing Address outside of Austria and inside of the EU
  • Do not charge the 20% VAT (VAT excemption) for a Business with his Billing Address outside of Austria and inside of the EU, however the Customer has to have a valid EU VAT-Identification
  • Do not charge the 20% VAT (VAT excemption) for any customer with his Billing Address outside of the EU, thus the rest of the World.



You may also create any other Tax Rates and Rules in your shop, using the Customer Groups EuVat is using for customer classification, as required by your countries regulations or shop functions. For example to add Tax Rates for specific countries, for more on this see here too...

5. Configure the Customer Groups to use with EuVAT

Set these Customer Classes to be used by EuVAT for the different customer classification:

System » Configuration » Tax » EU VAT Calculation

Also set the configuration option Assign Customers to Customer Tax Classes to No, Tax Class is determined by Customer Group.

It is MANDATORY to use 4 DIFFERENT Customer Groups here, otherwise the differentiation on the related Tax Rules will be incorrect.



6. Continue with your Templates and other Preparations

Now continue to set the remaining configuration for the EU VAT handling...