Financing, tax rates, and accounting
Recently I have taken notice that the tax generated on our store is not correct. Take the following example of a small order containing 2 of the same product. Each product is 11.50, inclusive of the tax already and shipping is not taxed.
Breaking this down, per individual line item, 18% of 11.50 is 2.07, this would mean our taxable amount should total to 4.14, but is stated to be 4.27. Similar cases have been found. Am I calculating something incorrectly here? Is there something I am missing?
Same issue here. Hoping some answers will come through soon!
I have the same issue and I am chatting with them at the moment to see wehat is happening with their tax software.
Same issue here.
e.g.
Product Price(Tax included): 100
Tax: 10%
No Shipping tax added.
Result:
Calculated tax is 9.12 (something like that)
I have no idea where 9.12 come from.
Should be 9.09
100/110*10=9,09 - tax inclusive
Hi, Party time
Why do you think that shipping is not taxable? Since the delivery is to the EU and the tax is calculated, your shipping is always taxable . So in your order you have 23/118*18= 3.51 VAT on goods and 5/118*18=0,76 on shipping. Total 3.51+0.76=4.27. VAt is applied to shipping even if the box is not checked (see the explanation next to the box):
This is correct behavior. Shipping is not sold separately it is part of the order cost and is considered in the EU and UK as incidental cost/ service and internally is to be levied with the same VAT as the underlying goods. When it comes to international sales , UCC (EU union customs code ) considers shipping to be a part of the customs value and it is to be levied with duties and VAT.
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