Kryptronic Software Support Forum

I am finding that setting up VAT in EuropaCart to be a real pain without documentation for how, where and what settings to make.

I have a large product catalogue of many thousands of products so load product data via a CSV file to ecom_prod table.  I currently have 2 test products 1 vat incurring and the other zero vat.  They have different delivery options which are both vat incurring at 17.5%.  See below:

name: VAT incurring product STANDARD delivery
taxstateprov: STANDARD
taxcountry: STANDARD
customship: standard
taxclass: STANDARD

name: NON-VAT product FURNITURE delivery
taxstateprov: EXEMPT
taxcountry: EXEMPT
customship: furniture
taxclass: EXEMPT

Putting "VAT incurring product STANDARD delivery" through the Checkout results in (the Vat calculation has been applied to both the product and delivery at this point which is correct):
Step 1 of 2: Create Order
Order Totals
Item Subtotal ex Vat £112.72
Delivery Total £7.25
Vat Total £20.99
Total £140.96

Step 2 of 2: Review and Pay
Order Totals
Item Subtotal ex Vat £112.72
Delivery Total £7.25
Vat Total £20.99
Total £140.96

VAT Summary
Item  Quantity  Total ex Vat  VAT  Rate 
126878 - VAT incurring product STANDARD delivery 1 £112.72 £20.99 18.62%

The problem is that the total amount of Vat for both the product and delivery cost has been used to calculate the Vat amount and Rate for this order item!?


Second problem:
Putting "NON-VAT product FURNITURE delivery" through the Checkout results in (NO Vat calculation has been applied to delivery which is incorrect):
Step 1 of 2: Create Order
Order Totals
Item Subtotal ex Vat £112.72
Delivery Total £21.99
Total £134.71

Step 2 of 2: Review and Pay
Order Totals
Item Subtotal ex Vat £112.72
Delivery Total £21.99
Total £134.71

VAT Summary
Item  Quantity  Total ex Vat  VAT  Rate 
126925 - NON-VAT product FURNITURE delivery 1 £112.72 £0.00 0.00%

As there was no Vat listed in the Order Totals there is no VAT value to be calculated for this product order item but the Order Totals is still missing the Vat for delivery.

3rd Test show what happens when both products are added to the Checkout:
Step 2 of 2: Review and Pay
Order Totals
Item Subtotal ex Vat £225.44
Delivery Total £29.24
Vat Total £20.99
Total £275.67

VAT Summary
Item  Quantity  Total ex Vat  VAT  Rate 
126925 - NON-VAT product FURNITURE delivery 1 £112.72 £0.00 0.00%
126878 - VAT incurring product STANDARD delivery 1 £112.72 £20.99 18.62%

Two questions:
Do I need to change the field values in the dataset upload for the non-vat product so that the Cart will apply Vat to delivery of that product?  If so, what value do I put in the field?

What setting do I change in admin or php code to stop this from happening -
Item Subtotal ex Vat £112.72
Delivery Total £7.25
Vat Total £20.99
Total £140.96

VAT Summary
Item  Quantity  Total ex Vat  VAT  Rate 
126878 - VAT incurring product STANDARD delivery 1 £112.72 £20.99 18.62%

The problem is that the total amount of Vat for both the product and delivery cost has been used to calculate the Vat amount and Rate for this order item!?

I'm wanting to put my shop live this week so a speedy reply would be much appreciated.

Hi

No, I have not had an answer to this show stopping error...

I don't want to mention the word bug as I am sure there is a setting soemwhere in EuropaCart to stop the Vat Summary breakdown from adding the vat from delivery to the vat assigned to the product and causing the product's vat amount to be too much and the associated vat rate to become 18.62% ans so on.

From a previous post by Nick:

"For the 20.053%, I assume either your rate is higher than 17.5% for the item or its options, or shipping may be taxable.

The actual rate shown is supposed to be the actual rate - not the standard tax rate."

Yes, shipping is taxable.  But, the tax associated with the shipping should not be applied to the order line item for the product - this results in Vat Summary displays like 18.62% for the Actual Rate whch is clearly wrong.

Am I the only Vat registered business in the UK using EuropaCart or is there a setting somewhere in admin to get the cart to realise that the Vat Summary for an item should not include the vat value of the delivery which distorts the Actual Rate of that line item? 

There is no wiki entry or 'getting started' documentation for setting up VAT and I am finding the admin system to be NOT user friendly for setting Vat up.

I like a lot of things about EuropaCart but I have to say that CCP6 UK is a lot easier to configure for Vat purposes. 

I noticed from another tread mention of a 'taxship' setting but can't find this in admin? Does this setting wherever it is stop the Vat Summary from adding the delivery vat amount to order line items?

kev wrote:

Found taxship in core_stateprov but this doesn't solve the delivery vat being added to the product line vat rate in Vat Summary display.

I'm just gonna keep reposting this thread to the top of the posts until I get a solution to this VAT Summary issue as I've been paying hosting costs for the last 2 months but still can't put my shop live because of this vat summary issue/bug ?

Hi

Please give me step by step what you, and also your shop link and I'll test the same using the install I am working on to see if same issue appears.

Sites gone live

had first order

no vat summary breakdown because of bug in VAT calculation on order line so VAT Summary switched off

RESULT = order confirmations and admin order details without any record of what customer has bought - great.

Nick, would you please fix the bug in the Vat Summary because it makes EuropaCart unusable?  I know that in previous posts you've mentioned things like Actual Rate which produces vat rates which are not 17.5% and so on, but from a UK user point of view if you show them Vat Rate 18.62% or whatever they will probably just ditch the order thinking that the site isn't calculating Vat correctly.  Vat receipts with these percentages will also cause a stir with HMRC.

It looks like I'm going to have to edit the php code myself to localize EuropaCart for the UK market !

Ok please confirm Kev if the following is the same issue you have:

On Order summary invoice it says:

Item Subtotal: £4.75 (this is correct and includes VAT)
Delivery Total: £2.91 (this is correct and includes VAT)
Country Tax Total: £0.83 (this is wrong as the VAT included in the above two is £1.14)
Total: £8.49 (this is wrong as the VAT has been added to this, when the VAT was already included in the Item Subtotal and Delivery Total)

Cheers

Hi mysoftware,

You seem to have noticed the same as me about Vat calculations in all of the XHTML includes for checkout, order emails and order confirmations.

I've also messed about with all of the settings in admin, changed my dataset upload fields for taxcountry, taxclass, stateprovtax or whatever it is etc etc to get vat to display correctly. 

The EuropaCart apps Vat settings are influenced by table field values, admin settings and Include script calculations which makes it difficult to know what to change without having a negative impact on another part of the app.  My solution implemented this morning was to enable Vat Summary displays in Tax Settings and I also removed the 'Vat' and 'Vat Rate' columns from the 5 XHTML Includes so at least the customer isn't seeing incorrect information.

Are we to understand that there is a requirement to charge VAT on delivery (when enabled for the EU tax country) for items that are tax exempt?

Hi Nick,

If Delivery is VAT chargable then it is irelevant whether the product is vatable or not. eg. childs clothes are VAT FREE but printing onto childs clothes is Vatable and the shipping is Vatable.

so...

Child Clothes = £6.00 VAT FREE
Print = £0.60 + VAT @ 17.5%
Shipping = £2.50 + VAT @ 17.5%
Total = £9.10
VAT = £0.54 (2.5 + .6 x VAT)
Grand Total + VAT = £9.64

Cheers,
Bruce.

Last edited by west4 (01-27-2010 04:29:24)

Bruce, Kev,

Your responses to Nick's question don't seem to be saying quite the same thing, which will confuse him I suspect!

As a UK-based but non-VAT-registered business, I am not sure which is correct!

Nigel

Hi Nigel

Be in touch for more skins soon as finalising these 2 sites.

Ok so we pass the correct information to Kryptronic if West4 and Kev could contact me Terry directly at sales@my-software.co.uk and we can then all agree what is wrong, what is right for all situations then provide a single post with our findings as I agree this will be much better than 3 of us saying this is wrong that is wrong.

Hi All,

I think this link might be helpful to Nick...

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4015895

Here we go... We are VAT registered and we show prices without VAT on the web site. At checkout we need to add VAT to products that have VAT on them and not charge VAT on products linked to non-VAT settings, if any non-VAT products have any extras that are VATable then just the extras need to be VAT charged, Couriers charge us VAT and we pass that on to our customers. Only the Royal Mail are allowed to NOT charge VAT on there sales by law (they have an exemption, all other Vat registered companies HAVE to charge VAT), as we do not use the Royal Mail it doesn't effect us. But if we did then that should be reflected in the VAT calculations at checkout for the shipping. UNLESS (the delivery address is outside the UK) the items are being shipped outside the UK then we would not pay the VAT on the shipping and would not pass it on to the customer.

WE need to see the Standard rate of VAT on all documents related to the sale, e.g. checkout, emails, etc. displaying an average rate of VAT is not only misleading to us and the customers but may lead to lost sales and possible infringements of the law.

If we sold one item at standard rate and one at the reduced rate and one at zero rate, we would like to see the rates listed by each item in the checkout and email receipts. If all products are the same VAT rate then a simple VAT Total is all that is required.

Each product and product option has a VAT drop down box, the calculations should be made from that drop down selection and be easy to combine different rates within the same product. the same for shipping if the shipping is set to VATable the vat should be added to the shipping if not VATable then not added.

There are three VAT rates in the UK at the moment including.

Standard rate

You pay VAT on most goods and services in the UK at the standard rate, which is 17.5 per cent.

Reduced rate

In some cases, for example children's car seats and domestic fuel or power, you pay a reduced rate of 5 per cent.

Zero rate

There are some goods on which you don't pay any VAT, like:

food
books, newspapers and magazines
young children's clothing and footwear
special exempt items - for example equipment for disabled people

Although each EU country has its own rates of VAT.


Hope this helps

Cheers,
Bruce.

Last edited by west4 (02-05-2010 07:46:35)