Forums / Currencies & Sales Taxes, VAT, GST, etc. / GST is not being applied to shipping

GST is not being applied to shipping

Started by peter_homann on 22 Oct 2013, 2:34 AM · Views: 1,441

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22 Oct 2013, 2:34 AM
#1
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peter_homann

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GST is not being applied to shipping

Hi,

I'm now have to collect GST. The GST seems to be calculated correctly on the products, but is not calculating the GST for the shipping cost.

Id there a configuration somewhere that indicates whether Taxes are applied to shipping or not?

Cheers,

Peter.

22 Oct 2013, 2:45 AM
#2
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peter_homann

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Re: GST is not being applied to shipping

Sorry, my bad. I found the tax class setting in the shipping module.

Cheers,

Peter

22 Oct 2013, 2:21 PM
#3
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Re: GST is not being applied to shipping

Peter,

Regarding the tax class setting in ozpost (assuming that is what you are using), I think it is worth noting how this works. The shipping quotes returned by the servers are all GST inclusive, so what this setting actually does is calculate the GST component on these prices and then subtracts this amount from the quotes returned.
It then relies on ZenCarts Tax settings to recalculate and re-add this tax amount as and where required. In theory, this double calculation could cause rounding errors, but in practice I've not seen it happen yet.

You may also note that ZenCart has a setting under "My Store" for "Basis of Shipping Tax". The ozpost module ignores this setting and will use "shipping" at all times, simply because this is the only setting that could ever be correct, and by hard coding it this way makes one less thing to go wrong for the merchant. :)

Overseas shipping costs are always GST free. Again, this is also hardcoded because again it is the only 'correct' setting, which is why the ozpost module doesn't have a 'zones' setting like many/most other shipping modules.

I'm providing this info as an aid to help you figure out exactly what is going on if for some reason you aren't getting the results you are expecting.

Cheers
Rod

NOTE: We are sorry that Rod is no longer with us.
We are grateful for all his contributions to the Zen Cart community.

Ozpost - The Ultimate Shipping module for Australian Merchants. Click these links for its Homepage, or Download from Zen-Cart.com.

22 Oct 2013, 8:40 PM
#4
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peter_homann

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Re: GST is not being applied to shipping

Hi Rod,

Thanks very much for the explanation of how it works. It answers a few assumptions I had.

Cheers,

Peter