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updating VAT ends up doubling Vat

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Started by imaginarynumber on 1 Jan 2010, 12:41 PM · Views: 1,830

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1 Jan 2010, 12:41 PM
#1
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updating VAT ends up doubling Vat

Hi All

Have just changed the "Uk zone" and "rest of EU" tax rates from 15.000 to 17.5000 in locations/taxes>tax rates

Prices online are displaying correctly.

I then decided I wanted to reduce the prices of the products. I opened the categories/products page and selected a product.

I entered the gross price that I wanted and noticed that the net was way off????

For some reason it is using 35% which is of course 17.5x2

I have no idea how this has happened given that I have not changed any thing else.

Any suggestions???

Thanks

2 Jan 2010, 1:35 PM
#2
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Re: updating VAT ends up doubling Vat

Opps......

I really could do with some help here.

I have only just noticed that some of my products are listed as non-taxable!!! If I try to change them then they suffer from the double tax problem- fortunately my best sellers were already listed as taxable prior to changing to the 17.5% and are displaying the correct tax.

I have no idea why products previously listed as taxable are ok but any changes in taxable status on other products or price changes to existing taxable products results in 35%.

Until I get some help I will have to swallow the VAT on the products incorrectly listed as non taxable

2 Jan 2010, 1:38 PM
#3
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Re: updating VAT ends up doubling Vat

Sounds like you have multiple tax rates configured, and thus they're all being factored in when showing you the calculated amount in the admin (there's an old quirk there which might be affecting your display-only, but not the data in the database).

Regardless, if you simply set the correct base rate, all the calculations should be fine on the storefront.

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2 Jan 2010, 2:13 PM
#4
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Re: updating VAT ends up doubling Vat

DrByte:

Sounds like you have multiple tax rates configured, and thus they're all being factored in when showing you the calculated amount in the admin (there's an old quirk there which might be affecting your display-only, but not the data in the database).

Regardless, if you simply set the correct base rate, all the calculations should be fine on the storefront.

Thanks for the reply- I really appreciate it

I have one tax class in locations/taxes> tax class

and in locations/taxes> tax rates

I have 2 tax rates

EU VAT zone - at 17.5% - priority 1
and
UK VAT zone - at 17.5% - priority 1

I charge different delivery rates to EU and UK so the EU zone excludes the UK.

Could the problem related to the priority for both being 1.

The 35% applies to both admin viewing and real world.

With hind site the problem of net and gross might have always existed- I have only been VAT reg for a couple of months and might not have manually changed any of the prices since introducing taxes.

Thanks in advance

2 Jan 2010, 2:35 PM
#5
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Re: updating VAT ends up doubling Vat

If both zones truly don't include any of the same countries/regions, then there will be no duplication on the storefront side.

On the admin side, simply entering the correct price will suffice.

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2 Jan 2010, 3:59 PM
#6
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Re: updating VAT ends up doubling Vat

Hi Doctor Byte

I have checked and the UK is not im my EU zone.

I changed the tax rate priorities and concerned that the issue might be because I have two tax rates at 17.5% I have now changed the EU zone rate to 17.501%

In admin the tax is applied as 35.001% but fortunately the customer side is correct. Thanks for pointing out the quirk.

I might have to rethink my shipping module. At the moment I am using zone based shipping with an admin charge rather than weight based.

ie UK=£2.50
EU states= £6
and rest of world (Defined as zz)= £8

It was the shipping module that forced me to set up two (equal) vat rates for uk and EU minus UK in the first palce otherwise the end price was double VAT liable for the UK.

Surely I am not the only person with zone (non weight based) shipping???

I have installed a test zencart and will play with that.

Thanks again for your help

2 Jan 2010, 7:13 PM
#7
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Re: updating VAT ends up doubling Vat

Hmnnnnnn......

I think that I have fixed things now!!!!

I removed the UK from the zone based delivery system and put it on the "bestway" option.

Then I added the UK to the list of EU VAT states and deleted the UK VAT rate- leaving just the EU VAT rate.

So far so good!!!!!!!:clap:

The changes also mean that prices in admin are correct.

Will try to feck up my test install at some point to see if I can replicate the possible zones shipping and VAT issue.

Thanks for helping