Major VAT Problem

[CCT.Darren]

We need to modify the site to inclued prices EX vat then ad vat if in the EU, the problem we are getting is that it adding VAT to the items then it adding VAT to delivery cost, we have set up 3 Delivery zones, with diffrent delivery prices, is there a way to not charge vat on delivery but when in the EU charge vat on products, it looks like it doing the following

It look like it is adding all the items together then checking to sea if it reaches the limit for free delivery (ex vat) then adding vat to it is this correct or is there a way to put prices in less vat then add them up to sea if it over the free delivery cost then add vat where appropriate......


Hope this makes sense……

[Mick Jackson]

If you have the bands for the different countries set to the correct tax rates, exempt, or standard (I think) then in the shipping and handling tab in business settings the 'shipping charges made' should be ticked and the tax should be set to pro-rata.
At least that works for me.

[fleetwood]

Hi Darren

In line with VAT regulations, if you are liable to charge VAT on your products then you must also charge VAT on the delivery charges made for these same items.

As far as I understand the rules, if you have a mixed supply of VATable and non-Vatable items, then the VAT on the postage should be added proprtionally (eg 25% of product value is vatable, then 25% of psoatge should be vatable).

However, I do wonder if the rules have changed, as i recently took a look at the Amazon site, and note that under postage, they say that if any part of the order is vatable, then VAT MUST be charged on the entire delivery charge. If there are any VAT experts out there with the definitive answer, please chip in.

Anyways, Actinic can do the necessary calculation for you.

Under Business Setting | Shipping & Handling you can setup the way Actinic handles VAt on postage, including making shipping 'VAT exempt', if you think you have a way around the VAT rules.

Martin

[CCT.Darren]

Thanks,

I now fixed the problem and it working the way we want it to.