Tax-free orders for valid VAT number

Sometimes, store owners of EU based shops need to provide tax-free purchases for the customers with valid VAT number. There are number of Magento 2 modules that provide this functionality with separate config. But did you know that you can achieve this feature for guest and registered customers without a single third-party module?

We assume that you already configured taxes for EU countries.

If not - please create:

1. At least one “Tax Rate” at the Stores > Tax Zones and Rates page.
2. At lease one “Tax Rule” at the Stores > Tax Rules page.

Configuring zero tax orders

1. Create “Tax free” customer tax class:
   1. Open any of existing “Tax Rules” at the Stores > Tax Rules page

   2. Expand “Additional Settings” fieldset and add “Tax free” tax class using the button below “Customer Tax Class” field.

      

   3. Uncheck newly created tax class in the “Customer Tax Class” field

      

   4. Save the rule
2. Create “Valid VAT” and “Invalid VAT” customer groups:
   1. Navigate to Customers > Customer Groups page and press “Add New Customer Group” button

   2. Create “Valid VAT” group using “Tax free” class:

      

   3. This step is optional. Create “Invalid VAT” group. Use your regular Tax Class for this group.
3. Configure “Automatic Assignment to Customer Group”
   1. Navigate to Stores > Configuration > Customers > Customer Configuration > Create New Account Options

   2. Enable “Enable Automatic Assignment to Customer Group” option, and assign proper values for “Group for Valid VAT ID” and “Group for Invalid VAT ID” options:

      You may select any other group except “Valid VAT” as a group for the customers with invalid VAT number.

      

4. That’s all! You can now test checkout page.

   

P.S. There is a bug in Magento which doesn’t allow to use this feature: when client enters a valid VAT and then clears VAT field - tax will not appear again.

You need to apply the patch that fixes this bug.