Support » Plugin: WooCommerce » Coupon discount increases with sales tax

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  • Plugin Support Caleb Burks

    (@icaleb)

    Automattic Happiness Engineer

    Is the coupon for a flat $50? Can you post a screenshot of the order totals / calculations? Sometimes it seems strange, but the calculations are correct.

    If you are including taxes in the product prices for example, the coupon amount will seem off. But the end total is what it needs to be – the same as if tax were excluded from the prices.

    It’s for a flat $50 so anything other than exactly $50 would be wrong. Here is a screenshot.

    http://www.awesomescreenshot.com/image/1497665/7108da6022e42fbca6c2902c157166c1

    Plugin Support Caleb Burks

    (@icaleb)

    Automattic Happiness Engineer

    It’s for a flat $50 so anything other than exactly $50 would be wrong.

    Not exactly. I know it seems that way and I thought the same – but after a lot of maths and a headache you’ll realize it has to be done this way.

    Discounts must be always applied before taxes. So in order for things to add up in the order review area, an extra discount has to be given. Switch taxes to be shown exclusive temporarily, and you’ll see the outcome is the same total cost.

    This doesn’t make sense.

    I have setup a cart discount coupon for £10.

    Product is £55 (inc £9.17 VAT).

    Apply the coupon and the coupon is shown with a value of £12, and order total is £43.00 (includes £7.17 VAT).

    Agree that taxes should be applied after discount, but taxes should not be applied to the coupon value. Is this a bug?

    Have you been able to figure this out? I have the exact same problem.

    There is NO way this should work like this. If I want to give a customer a coupon for $50, the customer should receive $50 off. Not $53.87. It will just confuse them. PLUS taxes vary from state to state, from county to county – so I have no idea how much $ is added on to every coupon.

    I am using UPS and a plugin called Tax Rate Upload, how about you? Because it used to work fine for me in the very beginning

    This is what I heard back from WooCommerce on the issue:

    “When prices are displayed including the tax in the cart/checkout pages, this has to be done in order for things to add up. Otherwise the subtotal lines would not make sense. Coupons have to be applied before tax (by law). Take the following order totals for example:

    Product: 120 (including 20 VAT)
    Discount: -12
    Total: £108.00 (18.00 VAT)

    When the -10 coupon is applied, the product price is turned into 90. This is a pre-tax subtraction. Then tax is recalculated: 20% of £90 = 18. So to ensure the order totals add up, 12 actually needs to be subtracted. Since you are displaying tax at the very top as opposed to after the discount where it truly belongs.”

    Yep ok. Makes perfect sense. Here is the issue I am running into: When I add the coupon in the cart, it subtracts it pre-tax and the amount matches. However, when I then go to the checkout page where tax is added, the tax amount is added to the coupon!

    So not sure if you are essentially saying the same thing but how can I possibly give someone the correct coupon amount if I don’t know what tax rate they have?

    Hi there!

    I fixed one of my problems. I had 2 tax codes and both were set at 1 priority. I changed the 2nd code to a 2 priority and things got fixed.

    • This reply was modified 1 year, 6 months ago by  batgirl65.
Viewing 8 replies - 1 through 8 (of 8 total)
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