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VM 1.1.2 provides wrong sales tax calculation (at least for DE and UK shops)

Started by jjk, August 23, 2008, 21:18:41 PM

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jjk

Hi,

just noticed that VM 1.1.2 (in EU-Tax mode) does not include shipping cost when calculating the sales tax. At least in Germany and Great Britain this is wrong according to the relevant sales tax laws. (Don't know if this is harmonized in all EU-Countries)

Example:

Product price: EUR 119.00 (including 19% sales tax)
Shipping cost: EUR   7.00


Total price:   EUR 126.00

Sales Tax:     EUR  19.00 (wrong!)


The Sales Tax should read EUR 20.12 (calculated from EUR 126,00)

The new manual says in chapter 4.11.1 that this can be adjusted by selecting a tax rate to be applied to the shipping rate. However, the tax selection field is not available on my installation (all other options are shown).

Does anybody already have a fix for this? (should have been fixed in live shops  ;))

Joerg
Non-English Shops: Are your language files up to date?
http://virtuemart.net/community/translations


jjk

Non-English Shops: Are your language files up to date?
http://virtuemart.net/community/translations

CBT

Hi jjk,

I decided to remove TAX all together, and treat all web prices as VAT inclusive.

This risk of error is too great.