Taxation based on Bill To versus Ship To

The Tax based on: options determine when iMIS does not charge VAT:

Bill to data	Ship to / Recipient data
Billing address is outside of the EU Billing contact is VAT Exempt Billing contact is VAT registered in a different EU country from the order's financial entity	Shipping address is outside of the EU Recipient contact is VAT Exempt Recipient contact is VAT registered in the same country as the shipping address, and the shipping address is a different EU country from the order's financial entity

 

Definitions:

• All orders have an associated financial entity, defined through System Setup > Organization Names. Each financial entity specifies a VAT Country.
• VAT Exempt means having the VAT Exempt option enabled on the contact's VAT tab (Customers > Manage customers).
• VAT registered requires having a VAT Registration Number specified on the contact's VAT tab. If so, whether a contact is VAT registered then depends on the tax method and the value in VAT Country:
• Bill to Data: if VAT Country is blank, the contact is VAT registered in the VAT Country of the order’s financial entity. (Exception: Web orders honor the original iMIS VAT implementation by first trying to establish the order’s financial entity from product lines.)
• Ship to / Recipient data: if VAT Country is blank, the contact is not VAT registered.

Here is a table that shows how VAT taxes apply to orders according to each Tax based on setting. You can substitute your EU countries for the ones used here (GB - Great Britain, BE - Belgium).