Tax issue

HaraldJ · 2016-01-11 20:42:22

Is it my configuration? The tax calculation shown in the cart looks wrong to me:

Total Before VAT
£19,00 GBP

VAT amount (20.00%)
+ £3,17 GBP

Total : £19,00 GBP

The "Total before VAT" should be £15.83, or it should say "VAT included (20%) £3.17".

I have made changes to the labels, but that shouldn't change the calculation.

You can find my cart setup here, the login information is as when initially installed.

Thanks!!!

Harald

rod barbee · 2016-01-12 01:52:19

Are you using the latest version of Cart?

and have you looked at the 'back-taxes' setting in Cart?

HaraldJ · 2016-01-12 02:04:57

rod barbee wrote:

Are you using the latest version of Cart?
and have you looked at the 'back-taxes' setting in Cart?

Hi Rod,

Yes, I'm using Cart 3.1.4, and "Back-calculate Sales Tax" is set to YES.

You can try it on this testing subdomain gallery and check the TTG-BE/Admin settings yourself, username and password have the default values.

Thanks!!!

Harald

rod barbee · 2016-01-12 02:20:15

I've changed the setting in the cart as follows:

Back Calculate Tax: no

Display Tax Upfront: no

It appears to be working as you'd expect now:

Total Before VAT
£19,00 GBP
VAT amount (20.00%)
+ £3,17 GBP
Total : £22,80 GBP

HaraldJ · 2016-01-12 02:30:29

rod barbee wrote:

I've changed the setting in the cart as follows:
Back Calculate Tax: no
Display Tax Upfront: no
It appears to be working as you'd expect now:
Total Before VAT
£19,00 GBP
VAT amount (20.00%)
+ £3,17 GBP
Total : £22,80 GBP

Hi Rod,

Thanks, but that's not how it should be.

The price shown with the product has to be the price including VAT - £19.

When it comes to the total amount, I would like to have the VAT amount included in this amount:

Total including VAT
£19,00 GBP

VAT included (20.00%)
£3,17 GBP

Total : £19,00 GBP

Unless it's very clear that the website is for business customers only, the per-item-prices shown have to include VAT.

The odd business customer on my site needs the VAT amount in the invoice, so the above should work.

Sorry, the Europeans can be a bit complicated!

Harald

rod barbee · 2016-01-12 02:54:19

Ok, I've changed the settings to:

Back Calculate Tax: no

Display Tax Upfront: yes

when you get to the add-to-cart dialog you'll see that the large option for digital download is now £22,80
Add it to the cart and then view the cart and you'll see the pricing breakdown:

Total Before VAT
£19,00 GBP
VAT amount (20.00%)
+ £3,17 GBP
Total : £22,80 GBP

if you need the price to add up to £19,00 you'll have to recalculate your prices.

HaraldJ · 2016-01-12 03:43:51

rod barbee wrote:

Ok, I've changed the settings to:
Back Calculate Tax: no
Display Tax Upfront: yes
when you get to the add-to-cart dialog you'll see that the large option for digital download is now £22,80
Add it to the cart and then view the cart and you'll see the pricing breakdown:
Total Before VAT
£19,00 GBP
VAT amount (20.00%)
+ £3,17 GBP
Total : £22,80 GBP
if you need the price to add up to £19,00 you'll have to recalculate your prices.

Hi Rod,

Thanks, but that wouldn't work. As mentioned before, the price per item that is shown to a customer has to include VAT - that would be £19 in the example case.

The correct calculation would be

1 photo XYZ                                 £19.00

Subtotal incl. VAT at 20%                £19.00 

VAT charged at 20%                        £ 3.17

Total                                      £19.00

Assuming that's not possible at the moment, I think I have to continue without showing VAT.

Cheers

Harald

rod barbee · 2016-01-12 04:04:10

Thanks, but that wouldn't work. As mentioned before, the price per item that is shown to a customer has to include VAT

That's exactly what it's doing right now. If you want the final price, including 20% VAT, to be £19.00, then you need to adjust the item price in the pricing scheme to £15.83

You can't set the item price at £19.00 and then expect it to still be £19.00 after 20% VAT added in.

The way I set it, the item price shown in the add-to-cart box is £22.80, which is what you would expect for an item priced at £19.00 with 20% VAT added.

right now the item price is £19.00. Add the 20% VAT and you get £22.80

HaraldJ · 2016-01-12 04:21:20

rod barbee wrote:

Thanks, but that wouldn't work. As mentioned before, the price per item that is shown to a customer has to include VAT
That's exactly what it's doing right now. If you want the final price, including 20% VAT, to be £19.00, then you need to adjust the item price in the pricing scheme to £15.83
You can't set the item price at £19.00 and then expect it to still be £19.00 after 20% VAT added in.
The way I set it, the item price shown in the add-to-cart box is £22.80, which is what you would expect for an item priced at £19.00 with 20% VAT added.
right now the item price is £19.00. Add the 20% VAT and you get £22.80

If you are selling to end users in Europe, the price for one item has to include VAT, and the total has to include VAT.

The VAT amount is an extra bit of information for business customers.

This is from an Amazon.co.uk invoice I can send to you, and shows how it should be:

Item A                       £49.99
Item B                       £  2.43

Item Subtotal:             43.69 
Postage & Packing:     £3.32 

Total Before VAT:     £47.01 
VAT:                     £9.40 

Order Total:             £56.41

rod barbee · 2016-01-12 04:35:37

then you'll have to ask Ben about how it's supposed to work. I'm pretty sure others have it working correctly.

it seems to me that this:

Back Calculate Tax: no

Display Tax Upfront: yes

does what you need.

then the final price of 22.80 is what's shown as the item's final price in the add to cart box.

But like suggested, ask Ben.

Ben · 2016-01-12 08:00:04

Have you tried:

Back-calculate Sales Tax: yes
Display Tax Upfront: yes

With that you should be able to set the product price at 19 GBP. Customer then sees that price.
Total then shows 19 GBP. "Includes Sales Tax" shows 3.17 GBP.

rod barbee · 2016-01-12 08:13:05

Ben,

this is what it shows in his cart with those settings with an item that's priced 19.00 in the add-to-cart box.:

would it work to simply change the localization for "Total Before VAT" to "Total Including VAT"

HaraldJ · 2016-01-12 17:28:10

rod barbee wrote:

Ben,
this is what it shows in his cart with those settings with an item that's priced 19.00 in the add-to-cart box.:
would it work to simply change the localization for "Total Before VAT" to "Total Including VAT"

Ben and Rod,

Thank you very much, we seem to be getting there! The only problem I found with the above is that I'm not asked about the country, so the above would be shown on invoices where it's totally irrelevant or misleading.

I tried the "digital copies to EU countries" option, then I get the country option at checkout, but if I specify USA or India, I still get the VAT shown.

Is there a way to get that sorted as well? Then it should work with a tiny amount of localisation.

Thanks!!!

Harald

rod barbee · 2016-01-12 23:24:59

there's a setting right below "Back-calculate Sales Tax" called "Reduce prices when tax does not apply". Right now it's set to NO. Try setting it to Yes and see if that gets you where you need to be.

You've got "Sales Tax Country" set to United Kingdom so the "Reduce prices..." setting should, I would think, solve the problem of tax being charged to purchasers from other countries.

HaraldJ · 2016-01-12 23:33:53

rod barbee wrote:

there's a setting right below "Back-calculate Sales Tax" called "Reduce prices when tax does not apply". Right now it's set to NO. Try setting it to Yes and see if that gets you where you need to be.
You've got "Sales Tax Country" set to United Kingdom so the "Reduce prices..." setting should, I would think, solve the problem of tax being charged to purchasers from other countries.

Thanks, Rod, I've seen that option, but don't want to use it, otherwise too many clever people would claim to be living outside the UK!

If I remember correctly, the question for the country came up correctly for physical products, the behaviour for digital downloads seems to be quite different.

rod barbee · 2016-01-12 23:43:31

Well, there may not be a way around that then if that setting is meant specifically to address the problem you have and you don't want to use it. Ben will have to address it.
(Don't PayPal orders show the country of the purchaser? That would be a check on those trying to be "clever")
I know he's already done some pretty impressive coding gymnastics to accommodate Europe's taxing laws so I don't know how much more he'll be able to do.

Community @ The Turning Gate

#1 2016-01-11 20:42:22

Tax issue

#2 2016-01-12 01:52:19

Re: Tax issue

#3 2016-01-12 02:04:57

Re: Tax issue

#4 2016-01-12 02:20:15

Re: Tax issue

#5 2016-01-12 02:30:29

Re: Tax issue

#6 2016-01-12 02:54:19

Re: Tax issue

#7 2016-01-12 03:43:51

Re: Tax issue

#8 2016-01-12 04:04:10

Re: Tax issue

#9 2016-01-12 04:21:20

Re: Tax issue

#10 2016-01-12 04:35:37

Re: Tax issue

#11 2016-01-12 08:00:04

Re: Tax issue

#12 2016-01-12 08:13:05

Re: Tax issue

#13 2016-01-12 17:28:10

Re: Tax issue

#14 2016-01-12 23:24:59

Re: Tax issue

#15 2016-01-12 23:33:53

Re: Tax issue

#16 2016-01-12 23:43:31

Re: Tax issue

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