Bundles products with different VAT rates

[chipp-09]

I am moving to shopify from another bespoke platform. I currently sell a lot of bundles that contain products of different tax rates. eg 20% and 5%.
Currently i have full control of the selling price of each item in the kit and the VAT rate of the item. This is then correctly outputted to our order management system as individual items with the correct VAT.

I don't seem to be able replicate this in Shopify. I understand i can create an over-riding tax rates for a collection, however as the price of the bundle changes the tax percentage would change. So this isn't workable.

If anyone has any bright ideas I would love to hear them.

[Hyde]

Hi there,

Hyde here from Shopify.

You're absolutely correct in saying that you could override taxes for individual products within the Shopify system by putting them together in a collection and setting a tax override for that same collection, as outlined here.

However, there is currently no means of allowing for product taxes to respond to the bundle they're part of and fluctuate accordingly. I would advise consulting a tax expert to ask if product prices definitely should adjust, as usually VAT on a product is fixed.

Something else you could consider here is using a product bundle app, which would bundle certain products for you. You can see some of the most popular Bundle apps in the app store below:

Bundle Products and Discounts 

Advanced Bundle Products

Upsell Bundles - Product Bundle

I hope this helps. Let me know if you have any other questions!

All the best, Hyde.

[chipp-09]

Hi,

These apps don't offer a solution.  As far a the customer is concerned they should feel that they are purchasing a complete product.  However in the back end the product is in fact a kit.

Each item in the kit should have its own price, inventory and tax rate.

[leewoods]

Same client functionality request as the OP. We have bundles of things which we need to be able to sell as one stand alone product but in the backend we need different VAT rates per element included.

[babydave]

Hi Chipp,

Just wondering if you ever managed to find a solution for the below as it appears I'm at the same crossroads you were at last year?

Any help or advice would be hugely appreciated on if/how you managed to navigate this?

Kind regards,

David 

[chipp-09]

Hi,

Yes we did.

Created a collection and tagged all the products that had a non-standard vat rate.  Then applied a tax over-ride to everything in that collection.

Worked through a number of example orders to get a mean average for the combined tax rate and assigned that rate to the collection.

This then pushed the correct VAT amount through with the order so our order management/ERP solution could account for the correct amount of VAT.

Hope that helps.  Speak to your accountant if you need help working out a consistent and fair combined vat rate.

[babydave]

Thanks so much for taking the time to respond, it really is appreciated.

We go live next week, so will have a good play around with it over the coming days and have also scheduled a meeting with our accountant too, with the hopeful intention of getting a composite VAT rate agreed, so hopefully it will be a spring board to getting all this sorted.

I’ll let you know how I get on and if I find anything else that may be of further use.

Cheers

[dimitri_leroux]

Hi Chipp

Thanks for opening up this topic and sharing what's working for you so far I'm following your path and have some questions hehe.

(i) About the mean average for the combined tax rate, to be sure, does the calculation bellow is what you're talking about?

Product 1: 100€ - VAT 20%

Product 2: 100€ - VAT 10%

tax over-ride = (100 * 0.2 + 100 * 0.1) / (100 + 100) = 30 / 200 = 15%

(ii) what accounting ERP solution are you using? I guess you're getting a total amount + VAT amount for each order instead of a line by line products?

Thanks in advance!

Dimitri