If you are using payment surcharge in 1.3.4. You may or may not have noticed that the surcharge is counted as “tax free”. If you apply any surcharge fees to your order, the taxes do not add up in the checkout and on the invoices. I have been told by CS-Cart that they consider the surcharge to be tax exempt.
However this is not the case in my country, as we have to tax for basicly everything. Unless your country allows payment surcharge to be tax exempt you might be affected. Because not only will this cause problems with the bookkeeping for you, it causes problems for your customers if they are other companies as the invoices are calculated wrong.
The solution I have asked for is the same way as shipping methods where you can set your tax in a detailed page by clicking on a configure link on each surcharge. And also name your surcharge as “Payment surcharge:” is not very descriptive, you may have different names for each surcharge on the invoice, and different taxes for each.
I have asked CS-Cart for a quote to fix this problem with a small modification. Not surprisingly the quote exceeded $100 at $110.
If anyone else is in need for this, I’d like to split the charges. The chance of seeing this in next release I guess is slim, and it would be a few months still.
Please send a PM if you’re interested in this mod.
And what I’d like to know, does your country allow payment surcharge to be tax exempt?
Sweden - not that I know of. Theres no reason why any charges should be tax exempt. I could cheat and say the entire product is free, just this big ‘surcharge’ to worry about…
Does nobody else suffer from this problem? How about you people in USA, do you know if payment surcharge is tax exempt?
Or is everyone living in ignorance of not knowing and hoping the IRS doesn’t catch them? 
Is this still not fixed? I need this too! In the Netherlands VAT also needs to be calculated over surcharge. Please respond if there is a fix?
[quote name='Eduard' timestamp='1312997519' post='119286']
Is this still not fixed? I need this too! In the Netherlands VAT also needs to be calculated over surcharge. Please respond if there is a fix?
[/quote]
Feel free to re-open this bug topic: http://forum.cs-cart.com/tracker/issue-2373-cart-doesnt-add-tax-to-extra-payment-costs/
I gave up.
[quote name='Eduard' timestamp='1312997519' post='119286']
Is this still not fixed?
[/quote]
No it isn't fixed yet.
The opinion of CS-Cart developer is: It's not a bug - Working As Designed !!! (they don't have to tax surcharge in there country) so they think it's not needed.
Feel free to re-open this bug topics also:
http://forum.cs-cart.com/tracker/issue-2512-surcharge-by-payment-methods-without-taxvat/
http://forum.cs-cart.com/tracker/issue-2524-surcharge-by-payment-methods-without-tax/
And you can vote, because its a feature not a bug - rofl
http://cscart.uservoice.com/forums/40782-professional/suggestions/1539355-tax-option-for-surcharge?ref=title
Wow, i see that's a nice way to make money.
They don't fix a bug that ist essential for some countries.
An everybody who's really need this will pay extra money to get fixed. Since 2006!!!
Hello all!
Our engineers are working on this feature to be added to one of the future releases. Please clarify in more details how you see this feature. Please clarify the following details:
- For what kind of tax system do you want to use this feature? If a tax calculation method is based on subtotal or on unit price?
- If payment surcharge is set as “% from total”, should the calculation be set from product with taxes or not?
For example, you have taxes set as 10%.
Product A: $100 (with taxes $110)
Product B: $300 (with taxes $330)
Subtotal: $400
Taxes: $40
Please clarify the amount we should take taxes from (from $400 (products without taxes) or $440).
We are looking forward to your replies.
—
Anastasiya Kozlova
CS-Cart Support Team
Hi Anastasiya,
It's quite simple I think. There should just be an option: calculate VAT over subcharges or not?
Just like with shipping costs.
So… when someone buys for $400 and there is $10 because he uses a certain payment provider, then he should pay taxes over $410,-
If payment surcharge is set as “% from total”… well… maybe you can make this dependent on whether the shop is showing prices that include or exclude tax?
Or am I saying something silly now?
Hope this helps!
I agree with Flow.
Just like shipping costs.
http://labs.cs-cart.com/professional/admin.php?dispatch=shippings.update&shipping_id=1
Only same checkbox (Taxes: VAT) for payment surcharge.
There is no need to define new taxes, the system is fine.
All taxes are calculated on shipping destination, same for surcharge.
----
Only add checkbox to surcharge.
And add to tax-calculation: if checkbox yes, also calculate same taxes to surcharge.
----
Example of invoice
Subtotal: $600.00
Shipping cost: $30.00
Payment surcharge: $5.00
Taxes:
VAT 10% included (1234242) $57,73
Total: $635.00
Hello,
Thank you for sharing your ideas with us.
I have forwarded them to our engineers. Let me assure you that we will give careful consideration to your suggestions.
—
Anastasiya Kozlova
CS-Cart Support Team
Now it is the time to fix the tax problem on payment surcharge for version v2.2.3 !!!
Hello karrde,
Thank you for the reply.
Unfortunately, this feature will not be implemented in CS-Cart version 2.2.3, but our engineers are working on this feature and it is planned to be implemented in one of the nearest major releases.
Sorry for any possible inconvenience.
—
Anastasiya Kozlova
CS-Cart Support Team
Since you guys seem to still be working on this, I thought I'd add my input.
I've done business in a number of places in the USA and I can assure you that almost without fail, Uncle Sam and the governor will expect their cut! It's definitely something that could cause major headaches.
I have been arguing about this issue with CS-Cart developers since 2007.
We payed for a fix for 1.3.5 but this is still not included in 2.0. So we would have to pay again to have this fixed.
They keep neglecting this issue because they want you to pay more money to fix this, as I see it, bug or critical missing feature. It's sad that they do not realize a better product would sell more. My clients would upgrade from 1.3.5 and paying the new cost. But I sure as hell wont pay a mod for every store to fix a bug.
Imagine: I explained to them since 2007 why this needs to be in core, and they still don't care.
The fix is simple. You create a tax, or use a tax rate you already have and select what tax to be applied to the specific surcharge. And it's done.
It's like banging your head against the wall.
CS-Cart is and will always be breaking tax laws in a multitude of countries until this is fixed.
Hopeless.
[quote name='Zyles' timestamp='1317863283' post='122994']
They keep neglecting this issue because they want you to pay more money to fix this, as I see it, bug or critical missing feature. It's sad that they do not realize a better product would sell more.
[/quote]
I also need this function and told them about it about 5 times. But I wouldn't say they are neglecting this issue because they want us to pay. I think it's more a matter of importancy. They just don't seem to see the need so much and fix /add other stuff first.
That they don't realize a better product would sell more… well, have you seen 2.2.3? It's improved enormously, loads and loads of little things were fixed and it really convinced me 101% that I made the right choice going with cs-cart and not their competitors.
Just 3 or 4 more things, which they also promised to take care of soon (see bug tracker) and then I can honestly say, for me at least, everything works exactly like it should (with an add-on for EU tax settings that is).
The mod I payed for in 1.3 could have made it into core, but it didn't.
Instead they want create a mod I have to install and check on every single update.
I can't believe I sit here 4 years later having the exact same problem. If this issue was fixed I would already have bought 2 new cs-cart 2.0 licenses. It's the only thing holding me back.
This would have been fixed in 2007 if they cared.
Hello,
Thank you for your messages.
We do sincerely apologize if this caused any inconvenience. This feature will be included in the next major CS-Cart release.
I would like to thank you for all your suggestions. We really appreciate your patience in this matter.
—
Pavel Zyukin
CS-Cart Support team