Adding Coupon with VAT included Help!

[akilcoyne]

Dear Support,

I am in a little crisis because we have some stuff going to print very soon which has coupon codes for a 10% discount. The only problem is that I have set up two coupon discounts, 1 for order level and one for Cart contents. I want the value to be deducted including VAT and it is not. This will look very bad to our customers if they only get a discount of the price ex-vat, for one, it will look very misleading. The two options which I have included which are 'Based on' Cart value including default tax for cart contents and 'Based on Value including actual Tax'. I have tried both of these options and also switched the value to default tax or actual tax and still it keeps deducting the coupon off the ex-vat amount . Our website uses custom tax amounts and i am wondering if this has something to do with it. If somebody could shed some light on this and let me know what I am doing wrong it would be much appreciated.

Thanks,

Adam
www.misamu.com

[Robert_Taylor]

Hi Adam,

This would be one for support and I checked that your issue is being worked on.

Regards,
Robert.

[Billy]

I have got the same problem and I am not using custom tax. Any coupon code or discount takes the discount of the product net value not the value after tax.
I have been scratching my head but not come up with a solution!!!

[Duncan Rounding]

I have got the same problem and I am not using custom tax. Any coupon code or discount takes the discount of the product net value not the value after tax.

Surely this is correct. I haven't tried this but surely deducting 10% before tax will inherently reduce the amount of tax added by the same amount as the goods value is now 10% lower.

I'm a bit confused. Are you saying that Actinic deducts 10% from the goods before tax but then adds tax based on the price before the discount was applied?

For example...

With no discount:
Cost 100, Discount 0, Subtotal 100, Tax 17.50, Total 117.50

With 10% discount (as I would expect):
Cost 100, Discount 10%, Subtotal 90, Tax 15.75, Total 105.75

With 10% discount (as I think you're saying?):
Cost 100, Discount 10%, Subtotal 90, Tax 17.50, Total 107.50

[mccanm]

What about £10 off

Hi

I have a similar issue however I am trying to offer a £10 discount off the basket including VAT. At the moment no matter what tax status I pick for the discount (cart value excluding tax or Cart value including actual tax) the £10 is taken off the ex VAT product subtotal. VAT is then applied i.e. a £10 offer becomes an actual cash give away of £11.75.

I only want to give away a cash amount of £10 no more. Am I misinterpreting the options in the based on field when setting up the discount.

Many thanks

Mark
www.getgeared.co.uk

[mccanm]

Extra info

Some extra info that precludes the workaround of setting up the voucher value as £8.51 i.e. deducting standard rate VAT from the £10 is that we have exempt product categories.

We had a similar issue with the free over delivery functionality where thanks to Tracy's brilliant thread on how to amend the OrderScript.pl we managed to have the Free Over value look at the cost of the products + VAT http://community.actinic.com/showthread.php?t=15392. Could something similar be used for discount applications

Thanks

Mark
www.getgeared.co.uk

[Bruce]

Marc,

I think you are misinterpreting the options. The discount would trigger as soon as the trigger value of cart contents + actual tax is reached. Since the discount amount is £10, that amount is deducted before VAT is applied. You are only giving away £10 not more.

If you use a trigger of cart contents excluding tax, then the value of the cart contents need to reach/exceed the trigger value before the discount is applied.

Kind regards,

[mccanm]

still very confused

Bruce

I do not understand your response. Prehaps an example will show you that I am cleary giving away more than £10.

If you go to our site and use the following URL this will take you to a jacket priced at £119.99

http://www.getgeared.co.uk/acatalog/...le_Jacket.html

Add this to the basket and click place order to go through to checkout.


The basket will show the net amount for the jacket 102.12 (i.e. 119.99/1.175) and VAT of £17.87

Add on England and Wales Delivery at 4.67 net ( 5.49/1.175)

And the basket will show

Jacket £102.12
Delivery £4.67
VAT £18.69 (i.e. Product and delivery VAT)

Total £125.48

Enter the coupon code IYB3107

This is set up to give £10 off when the cart value is over £100 including tax.

The basket now becomes

Jacket £102.12

Voucher -£10.00

Delivery £4.67

VAT £16.94

Total £113.73


Therefore comparing the basket total the customer would normally pay of £125.48 with the basket total the customer is going to pay when they use the £10.00 off voucher of £113.73. The difference is £11.75 i.e. I am giving away more than the £10.00 I intended. I want a basket total that is £115.48 i.e. The customer has been given a £10 note not a £10 note plus the VAT.

Can you help?

Mark

[Bruce]

The discrepancy appears because VAT is charged on the total less the discount. The first instance shows the total of the order with VAT calculated on £102.12, whereas once the discount is applied, as in the second instance, then VAT is calculated on £92.12 (£16.121 ; note: total is still above the dicount trigger).

Kind regards,

[Duncan Rounding]

...The customer has been given a £10 note not a £10 note plus the VAT.

But he has really been given an amount plus VAT, although less than the £10 pounds, because the VAT books must balance.

I've been following this with interest and I understand exactly what you're saying (and it is I think what a customer would expect) but if you just took £10 off the order then the VAT calculations per product would be wrong. If the order was for a number of items then would you proportionately reduce the prices of all products ordered to keep the VAT correct?

The extra £1.175 is not actually been given away of course - it's money you don't have to give to the VAT man. What you're really saying is you want the customer to perceive a higher discount than you are actually giving - also a good thing from a merchant perspective.

I think the only way for it to work in the way you mention is to use non tax pricing on the site (ie no tax mentioned) and only issue a VAT invoice on request.