VAT and price display

[Jason]

Hi,

 

I have just started setting up osCOmmerce. I have a wee problem.

 

Our company is French, buthalf our clients are in the US, and half in France.

 

When I define prices, I define them without VAT (I believe this is the correct way to do it). When the item is taxable, osCOmmerce adds the taxes to the price. OK so far.

If someone is in the US, I do not charge VAT. The price shown is therefore higher than the price they will pay (I notice that if the user has an account, and in their account they state that they live in the US, then the price shown is without VAT, however the problem still applies to new users). This is bad for business.

 

If I show all prices without tax to all users by default, the opposite problem applies. Those living in France will suddenly be asked to pay more than they expected once they have identified themselves (opened and account). This is bad for business too.

 

In my current shop, I show the same price to everyone, then when they purchase, if they are in France (or another country where I must pay VAT to the govt), I calculate the tax that I owe to the government. If they are anywhere else in the world, I owe no tax to the government and everything is OK.

 

This may sound mad, but this allows us to show a unified price to everyone - the price that will be paid. As long as 50% of sales are to US and 50% to France, then we set the price half way between the VAT inclusive and VAT excluded prices, and when we do the sums at the end of the year, we finacially in the same situation as we would have been with the oter systems mentioned above.

 

The only workaround I have found is to NOT have any tax zones atall, then to build a tax calculating module for our tax returns... But then I have the problem that the invoices are supposed to show VAT on them...

 

Anyone got any good ideas?

 

Thanks

[Jason]

I know now that the question was too long. I am sorry.

Has anyone got an answer.

Maybe even justshowing the pre-tax price in the shop...

[markb]

RE a shop in the UK and VAT -

 

In the UK if your business is primarily to the general public ALL PRICES MUST BE INCLUSIVE of VAT (I believe this is now Law). Check the high streets and the mail order catalogues -

 

You can show both prices - but the inc vat price must be the dominet one.

 

Obviously you need to be VAT registered for this to be an issue.

 

If you are in doubt look at the big retail sites like amazon.co.uk, pcworld.co.uk, jungle etc

 

For shippng to EEC member states the VAT is chaged at country of origin i.e shipping from the UK to france a private individual would be charged 17.5% - shipping to the usa you do not need to now about state taxes you just charge the ex VAT amout. CHECK the wording on your VAT return.

 

I display both prices inc and ex in listings. but display the price the user would actually pay in the shopping cart.

 

I added a flag to country table - charge_uk_vat this is set to Y /N i I just need to know what country the goods are going to when the user selects a delivery address.

 

then when a customer selects a delivery adress and the country changes the ACTUAL AMOUNT the customer is charged is display.

 

I also display a warning teling the user "if they have selected the wrong country and VAT is aplicable it will be aded or the order declined".

 

If you are not VAT registered then just charge everybody the same - the above is then irrelevant.

[markb]

Why not display both prices Euroes inc vat and dollars ex Vat.

 

The french will pay in euroes the US in Dollars.

 

It is difficult because you are not sure whether to charge tax or not untill the user loggs in and gives a delivery adress.

 

If it is business to busines diplay all ex VAT prices and indcate that.