VAT or GST collection based on country
In my country (Australia) a marketplace is required to collect GST for vendors who live outside of Australia but sell to Australians.
Currently the way tax collection is applied in Australia is if someone is registered for GST (our form of VAT), the responsibility on collecting and paying the tax to the government is on the seller.
Your plugin currently allows me as the marketplace to send the taxes charged to the seller.
However, what we really need is to set a Home Country. That is, we can set the base country for the site (for example Australia). This means if we tick the box send tax to seller and the seller is based in Australia they will receive the tax.
If the seller is based in a different country and sells to the base country, the marketplace needs to collect the tax and pay it to the government.
The catch to this is, the collection of tax for the seller based outside of the base country will only apply if that seller (vendor) sells to a customer in the base country (i.e. a seller/vendor who lives in New Zealand sells to someone in Australia, the site would have to collect the tax).
Additionally if the functionality could be set in this way it would be great too:
Would there be a way to set 2 base countries or multiple countries. That is under the definition of Base the tax liability would fall on the seller (vendor).
However if a seller (vendor) sells to Australia the marketplace would collect the tax. Likewise, if the seller (vendor) is based in Australia and the item is sold to New Zealand, the marketplace would collect the tax.
This would be calculated on the International Shipping. If international shipping is set for a product, this is when this splitting of taxes from the vendor would apply.
Is this possible?
Ebay does this sort of thing for countries that have this tax rule.