Brexit, VAT, minimum order requirement for UK addresses?

[brittainmark]

I assume that you had created the required geo zones as per #12 above

[gsh68]

I assume that you had created the required geo zones as per #12 above

I thought I had unless I am confusing what a geo zone is?

Tax rate 21%
Tax Class: Taxable goods
Zone Definitions (isn't this the geo zone?)
Zone Name: EU 21% Zone Description: [130:GBP]
Country: Belgium All zones

I've just deleted everything and started from scratch and get the same results.
Without the file installed the tax rate when using a shipping address in Belgium is shown correctly in the cart and on checkout. The correct VAT is displayed during checkout.
With the _threshold.php file the VAT shown in checkout is only being calculated on the shipping, even though the cart total is correct for VAT being added to everything.

Change the shipping tax class to none and checkout does not show any tax rate but the totals are still correct for 21% VAT being included.

Remove the _threshold.php file and the VAT line is reinstated in checkout.

And of course the tax is not being excluded on carts over the threshold when installed.

[gsh68]

OK, more testing.

Tested with all the same settings as above, with shipping as taxable goods.
For a product with a GBP price of £45 (37.50 incl 20% VAT- remember in UK we have to display retail prices including VAT), I get the following on checkout.

Sub-Total: £45.38
Royal Mail International Tracked (Shipping to BE): £11.98 (9.90 +21% VAT)
VAT 21% (included): £9.95
Total: £57.35

All of this is correct for 21% VAT

For a cart with a value of £180 (£150 incl 20% VAT) I get the following
Sub-Total: £181.50 = correct for 150+ 21%
Royal Mail International Tracked (Shipping to BE): £15.97 (13.20 + 2.77 VAT)
VAT 21% (included): £2.77 = 21% VAT on shipping
Total: £197.47 = correct total for 21% on cart+shipping

I changed the shipping fee to £132 to make sure that was above the threshold and got the following.
Sub-Total: £181.50
Royal Mail International Tracked (Shipping to BE): £159.72
VAT 21% (included): £27.72
Total: £341.22

Again, all correct for 21% VAT but only the shipping VAT is being shown and confirms that VAT is being added over the threshold, assuming for some reason product display prices including VAT was related to the issue.

Changing shipping to non-taxable results in the following

Cart £45 GBP
Sub-Total: £45.38
Royal Mail International Tracked (Shipping to BE): £9.90
VAT 21% (included): £7.88
Total: £55.28
All correct with 21% VAT only added to the cart contents and not shipping.

Cart £180GBP
Sub-Total: £181.50
Royal Mail International Tracked (Shipping to BE): £13.20
Total: £194.70
Note VAT has been eliminated here but is still being charged on the cart contents.

Cart £180GBP with £132 shipping
Sub-Total: £181.50
Royal Mail International Tracked (Shipping to BE): £132.00
Total: £313.50
No VAT added to shipping but still added to cart contents.

[gsh68]

I think I've pinpointed the issues for my particular usage.

Changed store to display prices without tax.
Customer from Belgium with 21% VAT rate set as above.
Threshold £130

Sub-Total: £129.17
Royal Mail International Tracked (Shipping to BE): £14.35
VAT 21%: £30.14
Total: £173.65
CORRECT

Sub-Total: £130.21
Royal Mail International Tracked (Shipping to BE): £14.35
VAT 21%: £3.01
Total: £174.92
Correctly stopped including VAT on cart contents but still adding VAT to shipping.

If shipping is increased to £132
Sub-Total: £130.21
Royal Mail International Tracked (Shipping to BE): £132.00
VAT 21%: £27.72
Total: £317.27
Correctly stopped including VAT on cart contents but still adding VAT to shipping.

So it can be seen that there are two issues.

First is that the net price is not being used when prices are displayed inclusive of VAT, and that stops any VAT being added or dropped from the total when cart contents are below the threshold because it is being assumed the price in the cart is without tax.

Second is that the shipping is being accounted for separately for calculating VAT.
When the cart contents are above threshold the VAT is still added to shipping if a taxable class. However the threshold for not including VAT is not being used on the shipping fee if it alone is above the threshold.

I tried out the Deny function and it works as you'd expect from the above - it basis whether to show or not on the price displayed in the cart, regardless of inclusive or exclusive of VAT.

I'm assuming no-one else in the UK is actually using this method to add vat for EU orders - rather it's being used to set a minimum price for orders to avoid the VAT/administrative implications.

For my situation, this is how I need it to act to exclude VAT over a certain amount for specific zones.
*Store must show gross price including taxes to customers by law.*

Use the cart price without VAT for threshold calculation, not including shipping.
If cart total is below threshold, add relevant tax rate to both cart total and shipping.
If cart total is above threshold, exclude all tax from both cart total and shipping.

Is this something that can be accomplished with this method or is a more complex mod needed?

TIA

[brittainmark]

I have had a quick look at the code and the decision to charge/not charge tax is base on the value of the goods before tax and after any discounts. I believe that this is how it was intended to work. So if you set your threshold at £130 for GBP. Then, if you have an item that costs £130.01 before tax, it will not have vat applied to the transactions. (The value of the item is the value in local currency adjusted to GBP). If the item is valued at £130.00 or less, then tax will be charged.
This Notifier is basically a switch that turns off the tax calculations if it exceeds the value in your Zone Definitions "[130:GBP]"

NOTE: Depends on the store having associated currencies defined and exchange-rates up-to-date (ideally at least weekly)

[gsh68]

I have had a quick look at the code and the decision to charge/not charge tax is base on the value of the goods before tax and after any discounts. I believe that this is how it was intended to work.

It's not working like that when the store is set to show prices including VAT which as you know is a legal requirement in UK.
It only works like that when set to display prices without VAT, and even then it isn't working properly as it still adds VAT to the shipping when the cart contents are above the threshold.