Why is your service calculating tax based on the Origin Location for VAT in the EU?

Overview

When you calculate tax for services in the EU to another country in the EU, tax is being calculated based on the Origin location, instead of the Destination location where you expected.

Environment

Avalara AvaTax

Resolution

• AvaTax calculates tax on services with a service tax code in the EU based on the Origin Country. (As of Oct 1, 2015)
• More information about VAT tax calculation can be found here:
  • http://ec.europa.eu/taxation_customs...s/index_en.htm