Tax per bill is applied to shipping costs

[thebeuving]

Hello,

We have a site that has California sales tax and flat rate shipping. Everything is working well except tax is being applied to the shipping costs, our goal is only to have the product price itself taxed.

My first question was, is this expected behavior and if so is there a good work around to accomplish what we am trying to do?

I have tested with other shipping modules and they have all had the same outcome.

See configuration below.

Thanks,
David


TAX RULE:
Calculation Rule name: Tax
Published = Yes
Ordering = 0
Description = USA California
Type of Arithmetic Operation = Tax per bill
Math Operation = +%
Value = 8
Currency = United States dollar
Product Category = Smarty Pants
Shopper Groups  = anonymous, default
Country = United States
State = California
Visible for Shopping = Yes
Visible for vendor = No
Start Date = 7/25/12
End Date = Never

SHIPPING CONFIG:
Countries = United States
Zip range = 00000 - 99999
Weight = 1 - 10
Weight Unit = Pounds
Minimum number of products = BLANK
Maximum number of products = BLANK
Minimum order amount = BLANK
Maximum order amount = BLANK
Shipping Cost =  4.50
Package Fee = BLANK
Tax = Apply no rule
Minimum Amount for Free Shipment = BLANK

[Milbo]

remove the shoppergroups, I assume you just mean all, same for the zips, you dont need them, if you mean all.

I changed the calculationh.php I agree that the shipment should not be in the bill tax, because you can tax the shipment itself.

[thebeuving]

Great thank you, will that be in 2.0.12?

[Milbo]

yes.

[myopicseer]

Question for Milbo:

In this thread you said:

"Remove the shoppergroups, I assume you just mean all, same for the zips, you dont need them, if you mean all.

I changed the calculationh.php I agree that the shipment should not be in the bill tax, because you can tax the shipment itself."

I need (desperately) to charge tax (Ohio law) for shipping costs, and would like to have that itemized in the cart (and in the invoice, of course).

Is there really a way to do this.  When I go into SHOP > SHIPPING MEHTODS and begin to add to a shipping method "TAX" and select from the drop down menu "Ohio Sales Tax", it adds onto the cost of shipping the exact amount of the tax for the cart total, instead of calculating the percent from the shipping fee.

So if the cart price total is 10 dollars and tax is 6 % and shipping cost is $1.00, result:
                     

TAX      DISCOUNT           TOTAL

$0.60                             $10.60

$0.60                                $1.60 <--WRONG.  Adds the tax based on the cart total instead of adding $0.06 for tax on shipping fee (should be  $1.00 * 6% = $1.06)

FINAL PRICE                    12.20    <-- should only be $1.06 + $10.60 = $11.66


How to make a tax rule that will apply to the shipping fee.  What am I missing?

[myopicseer]

Apologies.  The cart is calculating the tax on shipping correctly.  The way it was reading in the cart was a bit confusing.

You can apply a tax on shipping in shop - shipping methods and just select the tax rule you created in the products - taxes and calculation rules section.

[abcpune]

Great !!! Thank you...

[kyrotomia]

Hi,

I also need to add taxes to the shipping charges. I understand I can edit the configuration of the shipping plugin, however I can only add a single tax rules. In my case and at least here in quebec (canada), the shipping charges are taxed like any other product, which mean there is 2 seperate taxes rate that need to be applied.

Example :

Product 1 : 39.99$
Shipping : 9.99$

Sub-total : 49.98$ (tax need to be calculated on this number)
Tax 1 (5%) : 2.50$
Tax 2 (9.975%) : 4.99$

Total : 57.47$.

Can this be done?

[Milbo]

I am not sure, maybe with the new calculator, please check http://dev.virtuemart.net/projects/virtuemart/repository/show/branches/com_virtuemart2.0.14mp/administrator/components/com_virtuemart/helpers and download the calculatorh.php

[drukman2000]

Hi,
I know it is possible to tax the shipment using the same rule as for products.
Yet I want to apply only one tax rule.

Item 1 = 10$
Item 2 = 20$
Shipment =70$
-  -  -  -  -  -  -  -  -
Vat (18%) = 18$
----------------------
TOTAL = 118$

Is there away to accomplish that ?
Reading between the lines it looks like once it used to work like this.....

Thanks - Drukman.

[lindapowers]

Hi,
I know it is possible to tax the shipment using the same rule as for products.
Yet I want to apply only one tax rule.

Item 1 = 10$
Item 2 = 20$
Shipment =70$
-  -  -  -  -  -  -  -  -
Vat (18%) = 18$
----------------------
TOTAL = 118$

Is there away to accomplish that ?
Reading between the lines it looks like once it used to work like this.....

Thanks - Drukman.

We use tax per product for that. 4% in our case which is also applied to the shipping cost.

What we do is select categories that tax to 4% in the tax details and use the "apply generic rules" both for products and shipping.

That way the same tax is applied to all.

Don't know if this is what you mean.

[drukman2000]

No lindapowers.

Tax per product will change each product price in store (!).....
If vat is 18% - 100$ will show as 118$ - and I need to show vat only on checkout.

Currently when there is a shipment fee - vat is calculated TWICE !!!
1st time on the sum of products.
2nd time on the shipment fee.
-----------------------------------------
TOTAL

I want vat to to be calculated only ONCE !!!
Sum of products =100
Shipment = 100
-----------------------
200*1.18 = 236

It will make the invoice much easier to understand.
Thanks - Yaron.

[lindapowers]

No lindapowers.

Tax per product will change each product price in store (!).....
If vat is 18% - 100$ will show as 118$ - and I need to show vat only on checkout.

Currently when there is a shipment fee - vat is calculated TWICE !!!
1st time on the sum of products.
2nd time on the shipment fee.
-----------------------------------------
TOTAL

I want vat to to be calculated only ONCE !!!
Sum of products =100
Shipment = 100
-----------------------
200*1.18 = 236

It will make the invoice much easier to understand.
Thanks - Yaron.

What?

That makes no sense to me, you can show the base price without tax per products.

[drukman2000]

No lindapowers.

Tax per product will change each product price in store (!).....
If vat is 18% - 100$ will show as 118$ - and I need to show vat only on checkout.

Currently when there is a shipment fee - vat is calculated TWICE !!!
1st time on the sum of products.
2nd time on the shipment fee.
-----------------------------------------
TOTAL

I want vat to to be calculated only ONCE !!!
Sum of products =100
Shipment = 100
-----------------------
200*1.18 = 236

It will make the invoice much easier to understand.
Thanks - Yaron.

What?
That makes no sense to me, you can show the base price without tax per products.

And if you do it the way you proposed - will vat be applied once or twice ? -))
Drukman.

[Milbo]

Then use the tax per bill. For this it is