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Need help configuring for my tax situation

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13 Oct 2013, 1:07 PM
#1
dysfunctional avatar

dysfunctional

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Join Date:
Apr 2008
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Need help configuring for my tax situation

Hi all,

Years ago, I used to be pretty good with the zen cart admin, but now I've simply forgot stuff :). So I'm not completely sure how to accomplish the settings I need for my specific tax situation, so I turn to the community and hope that some nice person would be up for helping me with this one :).

I'm based in Sweden but do sell a lot internationally. Most orders are from other EU-countries, so I chose to charge 25% tax on all orders, to keep it simple. Also, to be able to sell tax-free internationally from Sweden the Swedish tax authorities requires that you have proof on that your order has left the country - for example a receipt from the shipping company. As my plan was to ship most orders as a regular letter I wouldn't have this proof, so I couldn't take the risk of not charging taxes - but still be forced to pay the taxes to the government after all :).

But my store grew rapidly, especially orders from Canada, the US and South America kept coming in. Which eventually caused a problem with too many lost letters. Nowadays I only offer registered and traceable shippings to these countries.

Which means that I do have proof that orders from these countries have left the country. So there is no longer a reason for me to charge taxes from countries outside of EU!

What I want to achieve is :

  • For non logged in people, all prices are shown with taxes.
  • But once someone from let's say Canada logs in, the prices are instead being shown without taxes, and taxes are never charged for this customer. Unless he want his order sent to a EU-country that is, but this is very rare.

I already configured so this customer can only choose traceable shipping. So for this customer, shipping price has gone up but taxes are skipped (at least Swedish tax, import tax is another thing (it's way lower than the Swedish 25% anyways)), so the customer should be happy, and everything is done according to the rules.

Any ideas on how to achieve this would be greatly appreciated. Thank you in advance

Best regards

Peter

13 Oct 2013, 7:53 PM
#2
drbyte avatar

drbyte

Sensei

Join Date:
Jan 2004
Posts:
63,513
Plugin Contributions:
177

Re: Need help configuring for my tax situation

Have you tried this?

  1. Set your store to "Tax Included In Prices = TRUE"
  2. Set up your 25% tax for all EU countries (create an EU Zone Definition, add all EU countries to that Zone Definition, then associate that tax rate with that zone definition)
  3. Set up a 0% tax rate for countries outside EU. (Create a non-EU zone definition, add to that zone definition all countries you ship to outside EU, then associate that tax rate with that zone definition)
  4. You said you've already set up zone-restrictions for shipping to EU vs non-EU, so that's already done.