Guest Posted December 30, 2006 Share Posted December 30, 2006 When adding new product VAT is added twice (35%) the amount set for the shop (17.5%). This is a problem that has just appeared, i.e. not after adding a contrib. in admin/categories.php?cPath=27&action=new_product Price £4.25 shows up as £5.7375 instead of £5, so working backwards as it were has become impossible. Any ideas? Link to comment Share on other sites More sharing options...
Guest Posted December 30, 2006 Share Posted December 30, 2006 Have you created tax zones and if so have you placed the UK into just one zone, if you have created a UK zone and EU zone, make sure that the UK is only added to one zone, otherwise it will double up. Link to comment Share on other sites More sharing options...
Guest Posted December 30, 2006 Share Posted December 30, 2006 UK placed in only one zone. However, for some reason it still doubled up. Had 2 tax rates @ 17.5% for each zone (1 for UK and the other for EU sales). Can I use the same tax rate for UK and EU zones? Have deleted second tax rate and now works fine. Will test with EU order later. Have to go to work. Thanks for help! Link to comment Share on other sites More sharing options...
Guest Posted December 30, 2006 Share Posted December 30, 2006 I too have had this problem and decided to work on it today, I think its maybe a problem with tax priorities not working correctly? The scenario is: Two tax zones (UK & Europe) Both need 17.5% VAT adding to sales, but I have a seperate shipping module for Europe (costs more to ship!) If I set this up (being carefull not to include UK in the European zone!) and set a tax rate of 17.5% for both then 35% tax is added (i.e. 2x the correct rate) The rest of the world zone is fine (i.e. NO tax is added, and the shipping calculates correctly) If I remove the UK tax zone, and add the UK to Europe, then tax is calculated correctly at 17.5%, but of course, UK customers get charged shipping at european rates - Not good! If I stay with the UK & Euro tax zones, but set Europe to 0% tax, then only 17.5% tax is added, but to Europe as well! If I set a rate of 5% for the rest of the world, then this is also added into the total! In fact, if I mess with any rate, then they all get added together. However, zones that are not included (i.e. if I remove the USA from the rest of the world tax zone) then no tax is added whatsover! Therefore it seems that all tax rates are being added together without regard for zones or priorities. (I have to say I don't understand the explanation in OSC [Tax rates at the same priority are added, others are compounded.] N.B. The problem is also apparant when adding new products (gross price = 2x local tax rate+net price) I don't have any contributions, my OSC is vanilla in this area. Any ideas welcome! Link to comment Share on other sites More sharing options...
Barbie Posted December 31, 2006 Share Posted December 31, 2006 I too have had this problem and decided to work on it today, I think its maybe a problem with tax priorities not working correctly? The scenario is: Two tax zones (UK & Europe) Both need 17.5% VAT adding to sales, but I have a seperate shipping module for Europe (costs more to ship!) If I set this up (being carefull not to include UK in the European zone!) and set a tax rate of 17.5% for both then 35% tax is added (i.e. 2x the correct rate) The rest of the world zone is fine (i.e. NO tax is added, and the shipping calculates correctly) If I remove the UK tax zone, and add the UK to Europe, then tax is calculated correctly at 17.5%, but of course, UK customers get charged shipping at european rates - Not good! If I stay with the UK & Euro tax zones, but set Europe to 0% tax, then only 17.5% tax is added, but to Europe as well! If I set a rate of 5% for the rest of the world, then this is also added into the total! In fact, if I mess with any rate, then they all get added together. However, zones that are not included (i.e. if I remove the USA from the rest of the world tax zone) then no tax is added whatsover! Therefore it seems that all tax rates are being added together without regard for zones or priorities. (I have to say I don't understand the explanation in OSC [Tax rates at the same priority are added, others are compounded.] N.B. The problem is also apparant when adding new products (gross price = 2x local tax rate+net price) I don't have any contributions, my OSC is vanilla in this area. Any ideas welcome! Isn't VAT the pits! Here how it does work for me.... - In TAX ZONES set up UK as 1, for example / Europe as 2 / others as 3 / and so on. - In TAX CLASSES only 1, named VAT if you like - In TAX RATE UK and Europe are defined in the same since you are giving them the same rate It is independant of shipping as in shipping you can define shipping zones and insert the countries you want, the VAT being linked to a tax rate, not a shipping rate See if this helps. We ship worldwide with different shipping modules based on countries and the VAT works. Link to comment Share on other sites More sharing options...
Barbie Posted December 31, 2006 Share Posted December 31, 2006 Isn't VAT the pits! Here how it does work for me.... - In TAX ZONES set up UK as 1, for example / Europe as 2 / others as 3 / and so on. - In TAX CLASSES only 1, named VAT if you like - In TAX RATE UK and Europe are defined in the same since you are giving them the same rate It is independant of shipping as in shipping you can define shipping zones and insert the countries you want, the VAT being linked to a tax rate, not a shipping rate See if this helps. We ship worldwide with different shipping modules based on countries and the VAT works. 'Scuse me guys, a bit sleepy : correction : In TAX ZONES set up UK and Europe as 1 / another as 2 / and so on. - In TAX CLASSES only 1, named VAT if you like - In TAX RATE UK and Europe are defined in the same since you are giving them the same rate so your columns look like VAT (class), ZONE 1, 17.5% VAT (class), ZONE 2, 0.00% etc (everyone is in VAT, do NOT try to define another class as it will add), should you need another percentage DO NOT make another tax class, just assign the rate to the zone required The tax zones do not affect shipping as in shipping you can define shipping zones and insert the countries you want , the VAT being linked to a tax rate, not a shipping rate. Link to comment Share on other sites More sharing options...
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