Two different Tax Classes, is that possible?

[Guest]

Hi,

I am setting up a store in the European Union, EU, and want to sell worldwide. Tax (VAT) shall be shown and applied to all shipping to EU countries and no Tax to shipping to countries outside EU.

 

In Shipping Modules in Admin I have set Flat Shipping Rate for orders within EU and Zone Rates to different countries outside EU. In Tax Zones, Classes and Rates I have one zone for EU, 25%, and one for Non-EU, 0%. Display Prices with Tax in My Store is set to true and for each product, Tax Class is set to EU so the prices are shown with tax.

 

When simulating a purchase within EU everything works perfect. Both the product price and the freight cost are shown including Tax (VAT) at the checkout. But when selling to a country outside EU, VAT is wrongly applied on the product price while the freight cost is shown correctly, without VAT. This is of course not what I want. If I change the Tax Class to Non-EU for each product everything is fine at the checkout to countries outside EU, both the product price and the freight cost are shown excluding VAT. However, this setting cannot be applied as the selling price has to be shown including VAT within the EU, so Tax Class has to be set to EU for each product.

 

It must be quite usual to ship to different countries/states having different tax classes, but how do you set this up in Admin?

 

Someone who knows?

 

bofri

[binkycrafts]

Not helping, just wanted to second the request. I have not started to set up my EU store to zero rate non EU sales but have just started to look into it when I found this post. To get me started I have all non EU orders set with no payment option because shipping from Malta is a little complicated and we do not get many non EU requests so for now we process the orders manually and have simply added a note to our site that non EU customers will not pay VAT. We then calculate shipping costs ans send an email with a payment link to our gateway at the adjusted value. I still want to have the site show prices without VAT when logged in from beyond the EU . . .anyone???

 

Thanks,

binkycrafts