Coupon %age discount doesnt include VAT

[kenwen]

Hi all,

I've set up my coupon for a product and it works...sort of. It calculates the discount ex VAT. (this is for a region where VAT is applied)

Any suggestions?

Thanks
Ken

[Nadeem]

Hi Ken

What type of discount have you set up? An "Order Level" discount, where it based on the cart value and you take out a percentage?

If it is the order level, then check your "Based on" and make sure this says "Cart Value including Actual VAT".

Kind Regards

[kenwen]

Hi Nadeem

I'm offering a discount coupon for my newsletter subscribers on a new product we're launching.

What I've done is set up a product group, added the item into it and set up a cart content discount for that group.

I did change the general properties to be value including tax whereas it was originally set to quantity.

Hopefully this will work when I test it out on Monday

Thanks
Ken

[kenwen]

Still not working...

Hi,

I'm doing a dicount on a product by product basis and it still calculates discount excluding VAT.

The discount is set up based on value including actual tax, trigger is £0.01.

If you want to test it out, the link is www.lkbshop.com

select heavygrips hand grippers/limited edition grips, buy any of those and the discount code is lkb-hglimited

Any suggestions appreciated

Ken

[Mike Hughes]

I tried this in your site and yes, the discount is being applied before VAT, but VAT is then being calculated on the discounted cart value as it should be.

What are you expecting it to do ?

Mike

[kenwen]

I'd assume people would want to see the discount off the price inc. VAT.

The way it works now makes it look like they aren't getting the proper discount as you stated it calculates it exc. VAT then works out the price inc. VAT

Its a quibble but if my discount appears to be inaccurate then that obviously loses me potential sales. Explaining that how it works out the discount also makes it more complex than it needs to be and I fear that it puts off any potential impulse buyers when they have to sit down and do some maths.

Finally whats the difference between discounting from default tax and actual tax?

Thanks

[Nadeem]

Hi there

With Actinic in general, all product prices should be excluding VAT.

Finally whats the difference between discounting from default tax and actual tax?

Default TAX you could setup for the UK, so from anywhere in the country you would take off 17.5%
Actual TAX is useful for the USA, as each states has different taxes, so you are taking away a specific tax for a specific state

Kind Regards

[steveoidm]

Has anyone worked out how to do this yet?? It just doesn't seem to make sense for the average customer that 20% off a product means 20% off the excluding VAT price.

Steve

[anf1y]

Has anyone worked out how to do this yet?? It just doesn't seem to make sense for the average customer that 20% off a product means 20% off the excluding VAT price.

Steve

Surely mathematically 20% off is the same whether it is ex-VAT or not? EG If something is £5.00 ex VAT, less 20% is £4. Plus VAT = £4.70
If it is £5.875 inc VAT (£5 +VAT), less 20% = £4.70 !!! QED. Or am I misunderstanding the question?

Anf

[kenwen]

Surely mathematically 20% off is the same whether it is ex-VAT or not? EG If something is £5.00 ex VAT, less 20% is £4. Plus VAT = £4.70
If it is £5.875 inc VAT (£5 +VAT), less 20% = £4.70 !!! QED. Or am I misunderstanding the question?

Anf

Mathematically yes, marketing no. If I say that I'm selling you something at £10 with a 20% discount you want to see the discounted price of £8 and a £2 discount. You don't want to see erm, 20% off £8.50...£1.75 off. Then VAT on top.

I've put big notices on my front page that the discount is done before VAT but I'm pretty sure the way it is worked out has a negative effect as we've had more sales on our other site where they get to see the discount worked out on the price with VAT.