Author Topic: VAT calculations and shipping address  (Read 8709 times)

iskye81

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VAT calculations and shipping address
« on: June 11, 2009, 17:03:32 pm »
Hi, I've seen a couple of posts on this but nothing seems to have been resolved.

In the Admin section I've got Tax mode set to 'based on shipping address' and have created tax rates for each EU country (all set to 15% since we're based in the UK).  The problem occurs at checkout.  If the customer is EU-based and is shipping to another EU address, all is well - total price including VAT is shown and the VAT total on its own is also displayed.

However, say customer is EU based but wants to send outside EU, then problems occur.  In this situation the VAT total correctly displays as zero, however the VAT amount is not deducted from the overall total.  Effectively it's telling the customer no VAT is being charged when in fact it is!

The situation is no better in reverse.  Say we have a non-EU customer wanting to send to the EU.  Here the VAT amount is correctly displayed but isn't added to the final order total.

To be honest I'm surprised this hasn't been resolved as its a pretty crucial thing if you're an EU-based VAT-registered business.

Hoping someone can shed some light on this.

Geister

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Re: VAT calculations and shipping address
« Reply #1 on: June 14, 2009, 22:30:19 pm »
Same problem here! It's so critical issue that I can't beleive it exists...:)
It makes Virtuemart unusable at all! Unless you set up several shops on several sub-domains (for US, Switzerland, EU, UK each) and edit the List of Countries accordingly, so that shoppers from the US-shop could not select EU-countries, and shoppers from EU could not select US as shipping destination. I have seen somewhere such project. They used sub-domains as a multi-cultural site with an appropriate flag-icon.
current config: Joomla Version 1.5.12 + VirtueMart 1.1.3 stable

aravot

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Re: VAT calculations and shipping address
« Reply #2 on: June 19, 2009, 06:09:38 am »
I tested this with 1.1.4RC (don't have 1.1.3 installation) it worked OK.

I created a in state account (taxed), than during checkout I added an out of state (no tax) shipping address, tax was not applied to order.

Did not check this with EU mode, as I don't know/have any EU address.

Geister

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current config: Joomla Version 1.5.12 + VirtueMart 1.1.3 stable

iskye81

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Re: VAT calculations and shipping address
« Reply #4 on: June 23, 2009, 16:29:27 pm »
Thank you Geister for the link and mauri for the files, seem to have this working now. :)

One problem I still have though is how to display price including VAT by default, i.e. to unregistered users.  This would then change when a user registers depending on where they are in the world.  Checking Show "(including XX% tax)" when applicable? in admin, and Show Prices including tax? in the default shopper group make no difference.

iskye81

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Re: VAT calculations and shipping address
« Reply #5 on: June 23, 2009, 18:00:02 pm »
Also VAT is still not applied to the shipping amount - VAT should be applied to the entire order total when shipping within/to the EU.  Looking through various posts this seems to have cropped up before.  Any resolution?

Geister

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Re: VAT calculations and shipping address
« Reply #6 on: June 23, 2009, 21:54:43 pm »
Also VAT is still not applied to the shipping amount

As mauri recalled in the above thread "You can set shipping vat when you edit a Shipping Rate."

That is correct.

However, the confirmation page looks strange, like:

Code: [Select]
Product price €476.00
Subtotal: €476.00
Shipping and Handling Fee: €119.00
  
Total: €595.00
Tax Total: €95

So, a customer can only guess, where 95EUR come from.
It looks like Shipping and handling Fee is 119EUR. But it's 100EUR+19%VAT.

In order to make it more reasonable it's possible in the basket page (in your theme) to put a string (<?php echo $VM_LANG->_('PHPSHOP_INCLUDING_TAX') ?>) after a string <?php echo $VM_LANG->_('PHPSHOP_ORDER_PRINT_SHIPPING') ?>.

So that that in the frontend it looked like:

Shipping and Handling Fee (incl. Tax)
current config: Joomla Version 1.5.12 + VirtueMart 1.1.3 stable

Geister

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Re: VAT calculations and shipping address
« Reply #7 on: June 23, 2009, 22:02:34 pm »
how to display price including VAT by default, i.e. to unregistered users.  This would then change when a user registers depending on where they are in the world.  Checking Show "(including XX% tax)" when applicable? in admin, and Show Prices including tax? in the default shopper group make no difference.

In EU-mode it shows by default, because the system knows which TAX should be applied (namely based on the vendor's address).
current config: Joomla Version 1.5.12 + VirtueMart 1.1.3 stable

iskye81

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Re: VAT calculations and shipping address
« Reply #8 on: June 24, 2009, 16:27:01 pm »
Thanks again Geister. Although I don't see any option to set the vat when editing shipping rates, there is a field I found in the jos_vm_shipping_rate table (shipping_rate_vat_id) which does just that.

Geister

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Re: VAT calculations and shipping address
« Reply #9 on: June 24, 2009, 23:01:18 pm »
Quote
Although I don't see any option to set the vat when editing shipping rates

I am talking about Virtuemart 1.1.4RC. I thought you too, since I refered to the above mentioned link.

I suggest you downloading Virtuemart 1.1.4RC and install it in the new directory and database to test all your bugs that you have in 1.1.3.

current config: Joomla Version 1.5.12 + VirtueMart 1.1.3 stable