The following is relevant for a VAT registered UK company who is shipping worlwide:
– VAT is only charged within the EU
– Customers outside EU are not charged any VAT (consumer and business)
– VAT is charged at the UK rate (origin from where the goods are shipped not destination. If you ship to Italy, UK tax is applied (20%) and so on, applying to all countries from within EU
– VAT charge is applied on the location in which the goods are consumed: more info here . If the billing address is outside EU but the shipping address is within the EU then you have to charge VAT
– VAT is not charged for delivery to Channel Islands
In Magento you will need to create tax zones and rates for each EU country. You will find a step by step guide here. A CSV of all EU countries with the 20% tax rate that can easily be imported into Magento can be downloaded here. The list can be uploaded in Magento backend: Sales – Tax – Import / Export Tax Rates
