We are new to CS-Cart, but are looking at moving our current cart to CS due to the massive amount of features available.
Whilst we get set-up on a new hosting and install of CS, we have been having a play around with a personal demo version and everything seems to be as it should be apart from the tax.
In the UK VAT is 20%
Shipping/taxes>Taxes and added a new tax rate for the United KIngdom of 20%, however when a product is added to the frontend cart and you proceed through the checkout the final VAT shown is less than 20%.
To keep is simple the product price was set at £100.00 Inc VAT with postage of £1.49, therefore the VAT should be shown as £20.30, but it is shown as £16.92, which is about 16.6%.
Any thoughts?
Thanks
Yes…I have the same issue. We have GST in Australia which is 10%.
For big orders the GST shows less - For small orders GST shows more
For an order $2919.00 the calculated GST is $256.80 whereas it should have been $265.37
And for a small order of $34.94 the calculated GST is $3.20 instead of $3.18
So for small order value it calculates lesser than assigned value and for larger order value it calculates more than assigned GST value.
All the prices are GST inclusive in my cart - so to calculate 10% GST we just divide the final value by 11.
For ex. in the above order of $34.94 the GST component would be $34.94/11 = $3.18
Any solution please?
cheers,
Anil
I was just looking at KB and found this link with instructions for inaccurate Tax.
[url]CS-Cart Documentation — CS-Cart 4.15.x documentation
havent tried it yet. But will try and see later. meanwhile if you try it and if it works please let me know.
I guess it only says about decimal places for tax…but dont know it may correct the tax calculation? Not sure!
Cheers,
Anil
Hey The Joker,
finally I found the solution…
Go to Administration - Settings - General and set Tax calculation method based on to ‘Subtotal’ instead of ‘unit price’. and you will get the correct tax.
try it and see and pl let me if it works for you.
Cheers,
Anil
It actually works correctly, took me a while to get my head around it.
Price includes tax (10%) checked
Product Price £100.00 = 100/110 = 0.9090*100 = £90.90 + 10% = £100.00
Price includes tax (10%) unchecked
Product Price £100.00 = £100.00 + 10% = £110.00
I hope this makes sense
[quote name=‘The Joker’]We are new to CS-Cart, but are looking at moving our current cart to CS due to the massive amount of features available.
Whilst we get set-up on a new hosting and install of CS, we have been having a play around with a personal demo version and everything seems to be as it should be apart from the tax.
In the UK VAT is 20%
Shipping/taxes>Taxes and added a new tax rate for the United KIngdom of 20%, however when a product is added to the frontend cart and you proceed through the checkout the final VAT shown is less than 20%.
To keep is simple the product price was set at £100.00 Inc VAT with postage of £1.49, therefore the VAT should be shown as £20.30, but it is shown as £16.92, which is about 16.6%.
Any thoughts?
Thanks[/QUOTE]
HI Joker, cos you are including vat and the cost is £100 total the actual vat shouldnt be £20.30 as the cost of the original product without vat is not £100 so it wouldnt be 20% of 100 it would be 20% of your net amount.(which is probably about £83.50)
That said, CS has got issues with tax being mis calculated but not by that much.
Lets say you are working out how much the vat is on a product including vat @ £100 the you wouldnt deduct 20% (many businesses make this mistake) you deduct 16.3% as deducting is more than adding on top. If you deduct 20% from the £100 you would then be selling the product @£80 net instead on £83.50 or so, 2 years down the line mr VAT man comes calling and has you off.
Hope this helps
John
[quote name=‘johnbol1’]
Lets say you are working out how much the vat is on a product including vat @ £100 the you wouldnt deduct 20% (many businesses make this mistake) you deduct 16.3% as deducting is more than adding on top. If you deduct 20% from the £100 you would then be selling the product @£80 net instead on £83.50 or so, 2 years down the line mr VAT man comes calling and has you off.
Hope this helps
John[/QUOTE]
You are right John. The most easiest way of calculating Tax amount is division by a factor. This factors varies with tax percentage.
If the tax is 10% then just divide the subtotal by 11 and if its 20% then divide it by 6.
If the toal sale amount (including tax) is $100 (which is your subtotal) then the 10% tax would be ($100 / 11 = $9.10) and 20% tax would be ($100 / 6 = $16.66)
Now…as regards to wrong calculation - I think it will calculate exactly $16.66 for 20% tax for $100 subtotal, if you set your ‘Tax calculation method’ based on ‘Subtotal’ rather than ‘Unit Price’.
Easy as!
Cheers, Anil
I’ve replied to this thread, but it hasn’t come up.
I fully understand what your saying I just couldn’t get my head round it at first.
Thanks for yout help
We’ve sorted it now, think we were been thick, but the penny has dropped on this one.
Thanks for your help.