Kryptronic Software Support Forum

SevenCrowns · 08-11-2009 07:28:57

Hi, I currently have settings set to Use European Union VAT Rules, catalog prices include tax. UK tax set at 17.5% (It's going back up from 15% on Jan 1st 2010 - we'll probably switch over to CC7 after that time).

I'm currently having a problem with the price display, when prices round up.

Example:

Item in database £5.00

With the setting 'display catalogue prices including tax' I get the display:

£5.01 Inc VAT

with the setting 'display catalogue prices both including and excluding tax' I get the display:

£4.26 Exc VAT, £5.01 Inc VAT

The actual Exc vat price is £4.255.

This 'problem' occurs for a number of prices that rounds up - basically it means that any price I put into the database might not be the actual price that I end up selling at.

I know that the price difference is only £0.01, but some of the products might be set at an RRP, or be £0.01 more than a competitor on comparison sites, or make categories nonsense eg. Items £5.00 or under category - with products at £5.01.

Is there any way to have exc vat prices calculated rounding down and maintaining the database price as the inc vat price like in ClickCartPro 6.

Dave · 08-11-2009 07:52:31

The rounding should not be being done any differently between 6 and 7. It uses the PHP built in round function which treats a 5 as going up rather than down as you're requesting.

SevenCrowns · 08-11-2009 08:49:48

Yes, I am aware PHP rounds 5 up.

In CCP6, If I put a price of £5.00 for an item, it will display as £5.00.
In CCP7, If I put a price of £5.00 for an item, it will display as £5.01. - Because it will calculate the ex vat price (4.255 = 4.26) then calculate the inc vat price (4.26*1.175 = 5.0055 = 5.01) instead of displaying the database value.

Also if you actually checkout a £5.00 product in CCP7, it will display

Item Subtotal Exc VAT £4.26
European Union VAT Total £0.75
Total £5.01

An alternative method might be:

instead of finding the ex vat price then multiplying by tax rate to get inc vat rate, to calculate tax seperately.

17.5% tax on £5.00 = £0.744 (0.74 with php rounding).

Exc Tax would be £5.00-0.74 = 4.26
Inc Tax would be £4.26+0.74 = 5.00

even if tax rounded up the final Inc Tax value would be the same as database then. Which afaik is what CCP6 (Greenbarnweb's UK version) does, and what CCP7 does not.

Last edited by SevenCrowns (08-11-2009 09:32:20)

SevenCrowns · 08-20-2009 08:36:50

As an additional note, in the current implementation of EU Tax:

1 item £5.00 item displays as £5.01, if you add two of the same item total price is £10.01; not £10.00 as expected, and not even £10.02 which you would get if you added £5.01+£5.01. Ten of the same item gets you a price of £50.06

I hope this oversight is being looked in to; as it stands, there is no way that I can use CCP7 as a shopping cart since prices aren't correct - that's pretty important for our business.

webmaster · 08-26-2009 15:14:53

Thank you for your post on this issue.

ClickCartPro 7 is designed to use pre-tax amounts as base prices for products and product option selection items. The recommended setting for users who enable EU VAT is to set 'Country Tax: European Union VAT Rules - Catalog Price Tax Entry' to 'Catalog Prices Exclude Tax' so that the system does not have to remove tax then add it back in for displays. Using this setting allows the system to auto-calculate the tax on the pre-tax prices you enter.

The system operates in a tax-free environment as it pertains to products and their prices - taxes are simply displayed then added back in during checkout but not carried with the items in the cart or used in calculations. The fact that the system deducts taxes from your prices may result in these types of rounding issues - especially if you use even decimals in your prices.

This can be averted by changing your setting for 'Country Tax: European Union VAT Rules - Catalog Price Tax Entry' to 'Catalog Prices Exclude Tax' and entering your prices (as recommended) excluding VAT. This can also be averted by using prices that do not have rounding issues (if you simply had a price of 5.01 you wouldn't see this issue) if you want to enter your prices as including VAT.

SevenCrowns · 08-28-2009 07:58:47

Thanks for your response Nick.

Does this mean that there will be no fix for this problem in the future?
If so will the 'Catalog Prices Include Tax' option be removed - since this feature does not work as expected.

I have over 8000 products on our database, changing the prices of all the products because the software can't display prices like CCP6 is not the preferred path for us.

webmaster · 08-28-2009 08:43:10

There are no plans to *fix* this. You can either adjust the prices on the few items where you are seeing a rounding issue due to the tax calculation, or you can do a mass update of your prices using a spreadsheet then change that setting. We will not be removing that option as a small percentage of users do prefer to enter their prices including tax.

By building the system this way were were able to get accurate VAT calculations on the product and product option selection item levels - allowing multiple tax levels and treatments on a per-product basis with options taken into account. In doing it this way, the tax calculations in checkout are accurate (as opposed to the calculations in CCP6 which were not). Additionally, the new logic in CCP7 has allowed CCP to conform to UK government rules concerning VAT. CCP6 lacks compliance in this area.

Kryptronic Software Support Forum

#1 08-11-2009 07:28:57

Help with EU Tax rounding Settings

#2 08-11-2009 07:52:31

Re: Help with EU Tax rounding Settings

#3 08-11-2009 08:49:48

Re: Help with EU Tax rounding Settings

#4 08-20-2009 08:36:50

Re: Help with EU Tax rounding Settings

#5 08-26-2009 15:14:53

Re: Help with EU Tax rounding Settings

#6 08-28-2009 07:58:47

Re: Help with EU Tax rounding Settings

#7 08-28-2009 08:43:10

Re: Help with EU Tax rounding Settings

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