I’m a Volusion store owner and sell physical, digital and paperback books (0% VAT).

For over a week I have been exploring a solution, one company said they can do it for $8,000 USD + monthly fee…

Well with the help of my regular Volusion developers; WebEcommercePros they worked at a very simple solution with NO scripting needed. Its all possible within the existing Volusion shopping cart.

Even Volusion don’t know about this… they said they are exploring it…

Here’s the solution:
1. In Volusion shopping cart there is an TAX / VAT area where you can enter the VAT % by country, so as a test for Hungary I entered 27%

2. In the products settings there is a VAT field where you can can the VAT % based on a product. So for all products they were already maked as 20%

3. In the digital product settings, the VAT field should be left BLANK.

That’s it, so simple and resolves the complicated issue.

As a test:
– I added a physical product, checkout out, my country set to UK, 20% VAT charged which is correct. I changed country to Hungary and 20% VAT is charged.
CORRECT!

– I added a digital product to cart, checkout out, my country set to UK, 20% VAT charged which is correct. I changed country to Hungary and 27% VAT is charged!
CORRECT!

I hope this helps you.