Financing, tax rates, and accounting
Hello,
we would like to offer in our store a free Collegeblock (0 Euro). But the shipping costs 0,99 Euro for Germany and Austria + Switzerland 2,99 Euro.
The Collegeblock must be taxed with 7% sales tax. Since the Collegeblock is free, the taxes only have to be charged on the shipping costs. However, on the order confirmations (see attachment) of the customers it now says subtotal 0 Euro, shipping 0,99 Euro and taxes 0 Euro. However, I would like to display the taxes for the shipping costs under "Taxes".
In the settings (see screenshot attachment) 7% shipping overrides were selected. Under the "Taxes" section, "Collect taxes on shipping overrides" was also selected.
Can you help with this?
Unfortunately, no one helped me. I'll try with more info:
Situation:
- Product costs 1 euro (19% tax = 19 cents).
- Shipping costs 1 Euro (19% taxes = 19 cents)
- Total taxes = 38 cents
Now if I use a discount code on the product of 1 euro (= product is for free), then the taxes are not only reduced by 19 cents, but by 38 cents. This means for shipping as well.
Why is this? Don't I have to pay taxes on shipping if the product costs 0 euros?
For support I would be more than grateful.
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