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VAT on Shipping

    Jan 31 2017 11:56:55

    #1

    northstar

    Join date : 2016-03-07      Posts : 16

    Hi all,

    I wondered if anyone knew how to handle this.

    Most of what we sell is subject to VAT but we also sell books which are zero rated. We have been advised by our accountant that if we have an order for just books, then the shipping for that order should not be subject to VAT.

    The problem is that I can only set up the shipping zones to charge VAT or not. This means that customers who just ordered books are charged VAT for shipping which puts us in conflict with the VAT man!

    Any ideas anyone?

    Thanks, Ian



    Jan 31 2017 19:12:03

    #2

    GT

    Join date : 2008-09-18      Posts : 3202

    Mal says...

    The specific value of tax to be added to a product, most people use the tax section in the cart, but you may have a product that is exempt from tax, in which case the syntax would be tax=0 or, if most of your products are tax free, you might want to use tax=15 when a product is taxable. Any tax value is taken as a percentage.

    So, apply a tax=20 to a taxable product and tax=0 to a product with no vat.

    Give that a test and let us know if that works for you.

    Having trouble with a form or need one building?
    Fast turnaround, but I do charge :)

    Mal's Forms / Scripts and the syntax are here.




    Feb 02 2017 11:34:40

    #3

    northstar

    Join date : 2016-03-07      Posts : 16

    Thanks for your reply. That is how I am handling the tax and the products come through correctly showing without VAT. However,VAT is being added to the shipping and this should not happen when all items in the cart are VAT free.

    Thanks, Ian



    Feb 02 2017 15:22:59

    #4

    GT

    Join date : 2008-09-18      Posts : 3202

    On the tax setup page Ian, Mal says...

    Tax can be added to an order either before the customer is asked to enter their personal details or after, when we know their shipping address. There are pros and cons to both methods; the former maybe a bit more commercial in that some people may be reluctant to enter their personal details before they know how much tax there is. On the other hand using the shipping address allows much more complex calculations to be made and it doesn't depend on the customer to provide the right information.
    TAX BASIS

    No tax will be calculated.
    Tax will be calculated using one of the rates specified below.
    Tax will be calculated using a rate set in your Buy Now links in the field named tax.

    *****************
    Are you ONLY using the last line and have no default tax setup?

    Having trouble with a form or need one building?
    Fast turnaround, but I do charge :)

    Mal's Forms / Scripts and the syntax are here.




    Feb 03 2017 08:48:19

    #5

    northstar

    Join date : 2016-03-07      Posts : 16

    Thanks for the reply. I don't think I have explained the situation very well.

    The tax charged on products is working absolutely fine. What I am looking for is that the tax on shipping be dependent on the products in the cart.

    If one or more items in the cart has VAT, then the shipping should have VAT added too. However, if all items are showing zero VAT then the shipping should be zero VAT also.

    What is happening at the moment is that VAT is added to shipping irrespective of the cart's contents.



    Feb 03 2017 10:00:53

    #6

    GT

    Join date : 2008-09-18      Posts : 3202

    Yes I understood what you were saying, that is why I asked the last question.

    Having trouble with a form or need one building?
    Fast turnaround, but I do charge :)

    Mal's Forms / Scripts and the syntax are here.




    Feb 07 2017 08:48:16

    #7

    northstar

    Join date : 2016-03-07      Posts : 16

    In answer to your last question, I use the tax field on all my Buy Now forms. I also have default tax of 20% set up.

    Thanks, Ian



    Feb 07 2017 11:01:15

    #8

    GT

    Join date : 2008-09-18      Posts : 3202

    Exactly, remove the 20% default and then try it.

    Having trouble with a form or need one building?
    Fast turnaround, but I do charge :)

    Mal's Forms / Scripts and the syntax are here.




    Feb 07 2017 12:29:51

    #9

    northstar

    Join date : 2016-03-07      Posts : 16

    Thanks GT.

    I have tried that but all it does is stop VAT being charged on shipping altogether. I need VAT to be charged on shipping when there are items with VAT in the cart.



    Feb 07 2017 16:44:32

    #10

    GT

    Join date : 2008-09-18      Posts : 3202

    Please check this is your setup...

    Tax will be calculated using a rate set in your Buy Now links in the field named tax.
    DEFAULT TAX RATE >>> zero

    This is the rate that is used for options 1 through to 5 and option 8 when you are not setting tax rates in your Buy Now links. It may also be used as the tax rate for shipping. Tax is 0%

    Shipping is taxable. <<< checked

    Quote tax before we have their shipping address
    1 - All orders. Tax is added to all orders.

    Having trouble with a form or need one building?
    Fast turnaround, but I do charge :)

    Mal's Forms / Scripts and the syntax are here.




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