If 0% VAT is shown on an invoice, although you expect a VAT charge, this is usually because it is a special tax case, such as an export delivery or an intra-community B2B delivery.

Checking the most common reasons

The system checks the order data and applies the correct tax rates. Even if you think you primarily sell B2C, the following cases can lead to 0% VAT:

• Export delivery (third country): The delivery is made to an address outside the EU tax area. A typical example of this is deliveries to the Canary Islands. These are correctly treated as tax-exempt export deliveries.
• Intra-community B2B delivery: The order is delivered to a business customer (B2B) in another EU country. If a valid VAT ID of the customer is stored in the order, the invoice is correctly treated as a tax-exempt intra-community delivery (0% VAT).

What you should do

Check the exact delivery address (country, region) in the affected order and whether a VAT ID is stored for the customer. In most cases, showing 0% VAT for these constellations is correct from an accounting perspective.

Related settings

The central settings for tax behaviour for these types of deliveries can be found in the system under: Setup » Client » [Your client] » Location » Accounting

In the section Settings for VAT you can make the net and gross settings for intra-community deliveries and deliveries from the EU to a third country.