A friend reached out to me because his WP & WC web agency couldn’t find a suitable solution, and what I’m describing is more a legal issue in Germany regarding VAT (they have also reached out for legal advice, who confirmed the issue). Please excuse if I’m overlooking something here, I’m a total noob with WC.
Description of the issue:
1. Step: The site sells single vouchers of 10 Euros each, including 19% tax.
(The 19% vat is included in the invoice, correctly calculated and they pass the VAT amount to the authorities accordingly)
2 Step: When a voucher holder buys a product of 11,50 € and redeems that voucher (that has already the 19% VAT included), the invoice gets calculated and shown as follow (translated from German):
– (Subtotal) Zwischensumme: 11,50 €
– (Discount) Rabatt: -0,00 €
– Payment-Type: PayPal
– Shop-Credit used: -10,00 € (this is the redeemed voucher)
– Total: 1,50 €
– incl. 19 % VAT 1,84 €
The issue is because of the 19% VAT being calculated on the subtotal of 11,50 € and being activated in that invoice with its total amount of 1,84 €. BUT 1,60€ has already been passed to authorities after step 1. Because that second invoice is showing a VAT of 1,84 €, authorities will demand the exact VAT amount of 1,84 €, instead of the 0,24 €. The correct VAT in that invoice needs to be 0,24 € calculated on the total of 1,50€ being paid in step 2 only.
I’ve seen the docs about “Apply before taxes” and multiple blog/forum entries over the internet, but none has really been fully helpful. In https://woocommerce.com/document/smart-coupons/using-apply-before-tax/ also doesn’t seem to apply here, and the description doesn’t really state what the setting really does: It just says “If you want to change this behavior of the store credit”, but not what or how it changes the behaviour of the store credit. Furthermore the WP Web Agency told them this would need further expensive customizing, what I couldn’t believe because of it beeing a really common issue here in Germany.
Really appreciate any help or somebody pointing us to the right direction. Thank you.
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