How to correctly setup EU VAT invoices

Post Affiliate Pro has a special setting to support VAT. You can activate it in the Configuration> VAT Handling section. The application will then activate a section in each affiliate's account where they can choose if they want to use VAT in their invoices or not. In case they want to use it, they will be able to define their VAT percentage and their VAT ID.
When paying out your affiliates, Post Affiliate Pro will generate a different invoice for VAT and non-VAT affiliates. Nevertheless, in case you are a member of the European Union and your affiliates are from the EU as well, these three cases could happen:
1. Affiliate is out of EU:
- In this case, no VAT is applied. Your affiliate should not choose the option to use any VAT. If they did, disable it for them.
2. Affiliate is based in the EU, but from a different country compared to where your company is based at:
- As an EU member, the affiliate will not pay VAT, so the invoice is without the VAT. Make sure the affiliate entered a valid VAT ID. If the ID is not valid, you have to charge the affiliate with VAT.
3. Affiliate is from the same country as the merchant:
- If the affiliate is from the same country as the merchant, the VAT is applied always, no matter if they have any valid VAT.
To add an automated logic to your VAT invoice (Configuration > VAT Handling > Payout invoice - VAT version), you can add this code to the invoice to work with or without VAT (we will work with Germany in our example):
{if $data6 eq 'DE'}
affiliate is from Germany, use {$payment_incl_vat} here...
affiliate is not from Germany, use {$payment_excl_vat} here...
The code checks the affiliate's country, saved in their Data6 field, and decides to use the payment value with or without VAT amount. You can design the invoice the way you need, with any comments or anything custom, based on the extra code above.