Subtract VAT TAX and mysterious discount appears

[e-trader]

Hi there,

Fresh install of JM 2.5.14 with VM 2.0.24c with sample data.

1. Screenshot of pricing before modifications
2. Add rule to subtract some vat tax (on top of default rule in sample data has +% of 21).
3. Result in... discounts

No discount should appear, right?


[attachment cleanup by admin]

[Milbo]

vattax is not done with -%

The vattax is ADDED to your net price.

[e-trader]

The calculation system should work correctly though?

No system working with financial data should output incorrect figures. The calculation system is one of the (advertised) strengths of VM.  People use systems in different ways to suit their business, the rule system is a flexible system. Lets not take the focus off the calculation issue.

[Milbo]

You do not use it correctly. The Vat tax is ADDED to the product net price. But you are doing a minus, what means you do not understand how a tax is correctly calculated.

Small hint.... Assuming your tax is 33,3%. If your product price is 9, you get with tax 12,.. but be aware,... 33,3% of 12 is NOT 9 ! it is 8!

[e-trader]

The sample data adds 21% VAT TAX using +% 21 . If one wants to remove it, it means -% 17.3550. In certain cases, I need the ability to remove it (make neutral) again. I do not see why the calculation method should show a discount in this case.

[Milbo]

If you remove the tax, then remove the tax. What you do is to add the tax and then to remove the same amount and that is of course a discount.

If you do not want to tax it. Then do not tax it. Maybe explain what you try todo.

[e-trader]

Hi Milbo,

Our anonymous users with an IP in the EU are placed in a shopper group that charges VAT TAX by default. They can check out as guest. When the items are shipped outside of the EU (shipping country outside EU) the VAT needs to be removed. How else would one handle or configure this situation?

When selecting no country in calculation rules means all countries. It is not possible to differentiate between "no country selected yet", "all countries selected" or "country x selected". If this was possible, correct rules could be made to prevent having to remove VAT TAX.

And to complete it - yes, shoppers with an IP outside the EU, are placed in a group with no VAT TAX and works perfectly; when selecting an EU country as shipping destination, VAT TAX is added.

[Milbo]

Then you should use this http://extensions.virtuemart.net/shoppers/eu-vat-id-checker-detail which is done for this purpose. And the right method is exactly what you did, to enable the tax only for the right countries. But it needs more to correctly do it. The plugin works also together with the geolocator ip plugin.

[e-trader]

Hi Milbo, yes I know about the plugin and it sure will have it's advantages.

From a functionality point of view, my opinion is that the basic VM calculation system should be able to allow the scenario. Not specifically subtracting VAT TAX, but rather being able to differentiate between no country selected, countries selected and countries xx selected.

The verdict of subtracting VAT TAX after it has been added = discount = bug or no bug or but nobody wants to fix?