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VAT calculation

    Dec 15 2009 09:57:48

    #1

    Ian S

    Join date : 2008-09-18      Posts : 154

    Hi,

    We are based in the UK and have to charge VAT to all UK customers and EU customers unless they have a VAT reg number.

    VAT isn't chargeable on orders to EU customers with a VAT number, or any customers outside of the EU.

    The VAT is already included in all of our prices in the 'buy now' form.

    On the tax calculation settings, we have the tax basis selected as 'Tax will be calculated using the specific rate below' and then have the default tax rate set to 15% and 'shipping is taxed' as ticked.

    On the 'tax is based on shipping address' section, we have 'my prices include sales tax' selected.

    Finally we have the 'EU area option' checked which applies tax to non VAT reg customers in the EU.

    We use shipping option 7 and split our shipping zones into UK, EU and rest of the world. None of these has the 'taxable' boxes ticked.

    The system works fine for UK and EU (none VAT registered) customers - the total is shown and the tax field shows the VAT that is included in the total.

    However for EU customers with a VAT number, and customers outside of the EU, the VAT field is shown as zero, but the total still shows the VAT inclusive price which is incorrect (too high).

    Ideally the tax field should show a minus value that reduceds the totoal by the VAT included in the prices.

    Is there any way around this as it's stumped us for months and it really irritates our none EU customer especially and understandably.

    Hope someone can help and sorry or the long post.

    Thanks

    Ian



    Dec 15 2009 10:29:26

    #2

    GT

    Join date : 2008-09-18      Posts : 3207

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