Strange tax calculation

  • Resolved Luuk Fiets

    (@luukfiets)


    6 years, 8 months ago

    Hi,

    I’m having a strange problem with taxes on a webshop I’m developing. We have two regions: Netherlands and Belgium. For the Netherlands we used the standard WordPress options to set up shipping (could use your plugin too, but isn’t needed). We have 3 options: standard shipping, free shipping (above 200 euros), and insured shipping (always available, even when free shipping is available).

    In Belgium we have 4 options: standard shiping, free shipping (above 200 euros) and 2 types of insured shipping: insured up till 100 euros or up till 500 euros, depending on the total amount being ordered. For Belgium we have one flexibel shipping with 2 shipping methodes.
    Methode 1 is standard shipping: regular shipping costs or free shipping when above 200 euros.
    Methode 2 is insured shipping. We have set up two price based rules. When the price is up till 100, then shipping should cost €15,50. When the price is higher then €100 the shipping should cost €18 if they want to use insured shipping.

    We’ve added products with prices inclusive of tax. The strange part starts in the cart. Lets use this product as an example: https://www.novaskin.nl/product/ageless-total-anti-aging-serum/. When I add it to the cart (https://www.novaskin.nl/winkelmand/) and calculate shipping costs (in Dutch: “Bereken verzendkosten”) to Netherlands (Dutch: “Nederland”) it shows a subtotal of €73,50 and adds the shipping costs of a regular shipping (8,41), which makes the total €81,91 which is correct.

    When I change shipping to Belgium (so again > click on “Bereken verzendkosten” an choose “België”) it shows the subtotal as €60,74. For some reason it extracts the tax from the product and uses that as subtotal, which isn’t correct, because the tax isn’t being added later anymore. It does: 73,5/1,21 (21% tax), which is 60,74. Then it adds 13 euros for standard shipping, which makes a total of €73,74. As you can guess, this is not correct.

    What I would like to achieve is the following for Belgium: the subtotal should be the price entered in the backend, so inclusive of tax. Then the shipping costs should be added and there also have to be added 21% tax over the shipping costs. Now it only adds the 13 euros for shipping, but we also have to pay tax over shipping costs.

    Does this make any sense? If you need further explanation, please feel free to ask any questions to help me out. Thanks for helping out.

Viewing 5 replies - 1 through 5 (of 5 total)
  • przemyslawrosa

    (@przemyslawrosa)

    6 years, 7 months ago

    Hi @luukfiets,

    I assume your shop is in the Netherlands?

    VAT is excluded from the price of products and shipping when you sell to Belgium due to tax settlements in EU countries. Such transaction is covered by a reverse VAT charge.

    In this way, the buyer of your products should settle VAT in one’s country (Belgium). If the buyer is an individual, the VAT rate should be added to the transaction in the store, regardless of one’s country.

    If I am correct, this is not plugin’s issue but taxation in EU.

    Let me know please if you have any doubts.

    Cheers,
    Pr

    Thread Starter Luuk Fiets

    (@luukfiets)

    6 years, 7 months ago

    Hi Pr,

    Thanks for helping out. After reading your message, I realize that I probably forgot to set tax for customers in Belgium. I will try to set the tax for Belgium as well. If it doesn’t work I’ll get back to you.

    Thanks again!

    ospiotr

    (@ospiotr)

    6 years, 6 months ago

    As we haven’t got any replies, I’m marking this topic as resolved for now.

    Thread Starter Luuk Fiets

    (@luukfiets)

    6 years, 6 months ago

    I already forgot about this thread, but I forgot to set the tax indeed. Setting the tax for Belgium solved the problem 🙂

    Adrianna

    (@adriannagr)

    6 years, 6 months ago

    Hi,

    I’m glad you successfully found a solution to your problem.

    Regards.

Viewing 5 replies - 1 through 5 (of 5 total)

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