Taxes including shipping?

  • Resolved heinrichplanzer

    (@heinrichplanzer)


    4 years, 9 months ago

    we have this situation:
    prices are entered including taxes
    shipping cost is entered including taxes

    in checkout, taxes have to be calculated on items as well as shipping cost.

    currently what happens is, if i set woocommerce to calculates taxes with items and shipping, it also adds taxes to the shipping price, which is wrong, since shipping price has already taxes included (it should be CHF 9):
    https://pasteboard.co/K6A3G87.png

    this seems very standard and straight forward situation, but i can’t figure out where i went wrong.

    Thank you!

Viewing 5 replies - 1 through 5 (of 5 total)
  • Mirko P.

    (@rainfallnixfig)

    4 years, 9 months ago

    Hi @heinrichplanzer,

    Thanks for reaching out to the WooCommerce forum.

    Can you please check if you have enabled “Shipping” in WooCommerce > Settings > Tax > Standard rates?


    Link to image: https://i.imgur.com/W83jmKP.png

    That option decides whether the WooCommerce tax rate should be also applied to shipping costs. If you see the option enabled please untick the box and you should be all set.

    Thanks.

    Thread Starter heinrichplanzer

    (@heinrichplanzer)

    4 years, 9 months ago

    Hi Mirko
    yes, this it’s checked:
    https://pasteboard.co/K6GqqNC.png

    and the system is correctly calculating taxes on shipping.

    My problem: i want to enter the shipping prices including taxes. that seems like the normal thing to do, since prices on products are also entered including taxes. i’ve marked it here:
    https://pasteboard.co/K6GtM5j.png

    Thanks!

    Plugin Support slash1andy

    (@slash1andy)

    Automattic Happiness Engineer

    4 years, 9 months ago

    Hey there again!

    Currently there’s not an option for how you want to set things up with entering shipping prices.

    If you leave that tax box checked, the tax rate is added on top of the shipping rate returned.

    If you uncheck it, it will not add an additional tax amount on top of the amount returned for shipping costs.

    There is not a way to enter shipping costs as tax inclusive.

    Thread Starter heinrichplanzer

    (@heinrichplanzer)

    4 years, 9 months ago

    Hi Andy
    thank you very much indeed, that gives some clarification.

    i’m a bit confused how this is even possible. maybe other countries than switzerland do not need to apply taxes to shipping?
    the way it is now, we have to change all shipping costs in order to get “nice prices” when tax is changing. it creates all kinds of problems. do you happen to know if this is will be in a future release? or where could i place such request?

    is there a plugin that solves this?

    Thanks!

    sirrahikkala

    (@sirrahikkala)

    4 years, 9 months ago

    I will bring this up too since this is critical after recent VAT changes in EU.

    From the 1.7.2021 we need to separate the VAT and define them for each country. Currently if you want to offer same price to every country BUT have included taxes varied, you need to use add_filter( 'woocommerce_adjust_non_base_location_prices', '__return_false' ); from here https://github.com/woocommerce/woocommerce/wiki/How-Taxes-Work-in-WooCommerce (which talks about 2.5 version…)

    Then the shipping taxes do not follow this logic at all. If we want to offer same fixed shipping prices to all countries, lets say 5.90€, the we cannot use existing shipping tax calculations since it will add the country specific VAT on top of that or it’s 0%. The regulations say that shipping cost VAT is tied to destination country VAT. The use case is quite common since many of the logistics companies offer fixed rates to several countries.

    Only workaround would be to create shipping zone to each country with backwards calculated shipping without taxes but that would break all other zone specific rules.

    –> This is critical issue which needs to be escalated @slash1andy

    • This reply was modified 4 years, 9 months ago by sirrahikkala.
    • This reply was modified 4 years, 9 months ago by sirrahikkala.
    • This reply was modified 4 years, 9 months ago by sirrahikkala.
    • This reply was modified 4 years, 9 months ago by sirrahikkala.
Viewing 5 replies - 1 through 5 (of 5 total)

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