NZ GST Compliance and rounding to nearest dollar

Cathy_Vercoe
Shopify Partner
1 0 1

Hi,

I have just set up a shop for a local government art gallery and as such have had to jump through all the hoops to ensure the site is legally compliant with NZ tax law. I've looked at any NZ Shopify sites I can find and have found none that have implmented this. My problem is that we have to be able to stand up to any scrutiny and be extra sure we are complying.

As such by default all items in the shop must be displayed as tax inclusive. In New Zealand we have a standard 15% Goods and Services tax applied to all items sold, so the prices in the shop must be displayed with the 15% tax included. When it comes to checkout and tax invoices however the tax must be shown as a sub total. To further complicate things we must also charge tax on shipping, but not charge any tax for overseas purchases.

I have spent hours trying to work out how to make all this happen and have reached the final hurdle which has me somewhat stumped.

I implemented the UK VAT system using a 15% tax instead of the 20% used for VAT. I removed the tax from all the original prices and loaded all the products into the backend CMS of Shopify without tax. I then added the calculation into the code in all parts of the shop where the price is shown ie multiply by 1.15. 

So far so good and the items displayed in the shop as GST tax inclusive. 

After a few tweaks it is working perfectly across all parts of the public pages apart from one thing - rounding to the nearest dollar....

The original price was always rounded and the discrepancies only occurred when we had to loaded the products minus GST into the back end and applied the formula to make them appear with GST in the front end.

I need the prices to be the same as in the actual physical shop or the reconciliation between the two systems don’t match and the prices are different between the two stores.

The problem is that the calculations don’t round up or down to the nearest dollar which is what I need them to do.

Eg $10 minus GST = $8.70 but $8.70 plus GST = $10.01 – the price in both shops needs to be shown as $10.00

The requirements from the Tax Advisor are that all prices be shown inclusive of GST throughout the shop but that the tax is shown separately when paying in the checkout and in the invoice.

The checkout at this point is fine as it shows the price without GST (which is always rounded) and the tax separate.

The tax doesn’t show for international buyers so the amount is rounded and minus tax which is also fine.

NZ buyers also have shipping with tax added which is separated out as well and the tax for both is totalled at the bottom of the checkout calculation.

The checkout doesn’t need any changes.

At this stage the product only displays correctly (rounded) in the product page , but unrounded in the cart and when browsing or searching.

These need to be the same as what is displayed in the product page – which is the same price as in the real shop.

Does anyone know how to make the prices in the cart, browse pages or search results round to the nearest dollar?

Any ideas or examples would be appreciated?

AmyZ
Shopify Partner
14 0 4

Hi Cathy, did you manage to find a solution to this? I found a solution by using tax inclusive prices, and then negative taxes for overseas customers (to remove GST). But Shopify has just announced they are no longer supporting negative taxes from 1 Sept.

 

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