Tax being added to shipping?

Tourist
327 0 2
Fresh from the 'dashboard' thread (http://forums.shopify.com/categories/1/posts/5944) I checked my client's abandoned (test) orders for www.cardiaconline.co.uk I noticed that although the 'my prices include taxes' box is checked in the back-end there is still some tax being added to the order. Oddly it doesn't seem to relate to UK VAT (17.5%) added to either the cart value, shipping cost or a total of the two. Anyone have any ideas what's going on? Thanks Mike
Mike www.anothervision.co.uk
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New Member
247 0 0

Mike, on the order screen it says “Including taxes” if taxes are included in your product’s price. The tax is calculated on the subtotal. The customer did not add these taxes to the order total if taxes are included.

If your subtotal is, e.g. £20 and taxes are included in your prices, then the UK VAT (17.5%) would be £2,98 (because £17.02 + 17.5% = £20).

Now, with taxes not included, the same order would look like this: £20 + £3,50 (taxes) = £23,50.

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Tourist
327 0 2

Hi Daniel

Thanks for your quick response. Sorry to have been such a thickie and not noticed that the total paid was correct! However I’m still a bit confused about the declared tax paid.

taxes

On this (test) order the rate should be 17.5% but I make that 29p of VAT rather than 25p.

0.25 / 1.65 * 100 = 15%

Have I set something up wrong?

Thanks
Mike

Mike www.anothervision.co.uk
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