Are UK VAT calculations working OK?

Shopify Discussion
1

Hi there,

I’ve taken my first order this morning for a UK customer with the following values:

Product A: £9.95 × 1 £9.95

Product B: £5.95 × 1 £5.95

Product C: £34.95 × 1 £34.95

Total: £46.18

Black Friday discount (20%) -£10.17

New total: £40.68

Postage: [email removed] £46.18

VAT (@20%) £9.24 (My calculation) vs £6.80 (Shopify calculation - This equates to 15%)

Even if we take out the cost of postage and recalculate the VAT, it’s nothing like the £6.80 shown.

Everything else calculates correctly, just not the VAT. If I look in my settings (Settings → Taxes and Duties) it tells me I’m collecting VAT in the UK, but does not display the rate or allow me to adjust it (OK that it doesn’t).

Thanks,

Jon.

2

OK - Some real newbie issues I should 'fess up to…

  1. The VAT calculations are linked to ALL products set to ‘Charge tax on this variant/product’.
  2. The items appearing as ‘Shipping Not Required’, make sure the ‘This is a physical product’ is set for ALL physical products, including variants
3

@JoMoJo

I’m not sure how you get a ‘Total’ of £46.18, I make the total £50.85 which also matches the 20% discount.

I assume to get £9.24 VAT you are incorrect calculating the VAT as 20% of the VAT inclusive total.

You should divide the VAT inclusive total by 6 not 5.

So my guess is that you’re not charging VAT on shipping…

See ‘Charge tax on shipping rates’ under ‘taxes and duties’ in Settings.

Regards,

Online_Seller

4

Thanks for this - Yes. Absolutely nothing wrong with the discount calculation. The problem was solely with the VAT calculation. As per 2nd reply this was caused by not marking items as ‘taxable’ in each product.