Removing Tax at Checkout

Hello,



Our online store sells products to many different countries in the world. We have set up VAT as a tax which is 23% and I have set the tax to be included in each price ( so say an item that costs 9.99 is inclusive of VAT).



The locations I have set up are Ireland, UK, Europe, USA & Canada and Rest of the World.



In the Taxes settings I have 23% added on to Ireland, UK and Europe.



What I need is for the tax to be removed if someone buying the product is not getting it shipped to anywhere in Europe, however when I add a product to the cart and click checkout and change my Address to say, the United States, The “Tax 23%” text disappears however the price is still inclusive of VAT?



Is there anyway to remove 24% of the price when the customer is shipping to an non eu country?





Thanks



Alan

Sounds like a bug.

Hello Alan,



Thank you for your message.



Unfortunately, there is no such an ability in standard CS-Cart to reduce product price in such cases. However, there is certainly an issue with the tax feature in CS-Cart. I have forwarded information about the issue to our engineers. They will certainly consider it and most probably provide a solution to it.



If you want to be updated about the status of this issue, please contact us via Customer Help Desk and create a ticket describing the problem. Our technical support engineer will keep you updated about this.



Thank you.





Pavel Zyukin

CS-Cart Support team

Pavel,

Are you saying that it is not possible to have a price shown to someone in the UK (where VAT is required to be included) and to someone in the US (where no VAT would apply) that the US person would see a price that includes VAT which they do not have to pay? And are you further saying that this is expected behavior?



I thought that tax was only applied to the price when the tax was applicable. So after the customer's location is determined, the price is adjusted to remove the VAT from the price if VAT doesn't apply.

Hello Tony,



Thank you for your message.



Yes, you are right. It is possible if we are talking about a tax which has the Price includes tax check box cleared. However, Alan has this check box selected. So base product price will not be changed on the checkout page for shipping addresses of different locations in this case. This is how standard CS-Cart works with the Price includes tax option enabled. I hope it explains the situation.



Thank you.





Pavel Zyukin

CS-Cart Support team

I already mailed extensively and used the bug tracker some time ago about this but it never came to a solution. Actually, it was mostly ignored - I think at the time cs-cart support was extremely busy because support has become much better again lately. Hopefully they have time to fix his annoying issue once and for all.



Basically, cs-cart can only add tax to a non-tax price.



It can't remove tax from a price - which sucks because this can cause your shop to not show nice prices due to rounding. (for example: a product can cost 34.94 or 34.96, not 34.95



Alan, I'd advice you to run a simple calculation so your prices in the admin do not contain tax anymore, and then to install this add-on: http://www.cs-cart.s…vat-number.html



Hope this helps.

This is in fact a defect in either design or implementation. By definition, the US customer in this case would not be subject to VAT and therefore the amount of tax included in the price should be zero. This should be done at the earliest point where the destination is known.

I am based in the UK and sell worldwide. I can confirm this flaw in CS-Cart's functionality is a really big issue as I have suffered from it for years. All of my support tickets regarding a fix have resulted in me being offered hugely expensive custom development! Now our sales volume has grown, it is causing an unacceptable amount of problems.



Has this been resolved in anyway yet? If not, I'll have to look for another shopping cart solution. It will be a shame to move away from CS-Cart for such a silly flaw. Is there anyone else out there feeling my pain?

Hi - Just want to know if this issue has been fixed?



We were recommended CS Cart - and whilst it looks great, Prices in the UK and Europe have to be shown to include VAT for B2C transactions - this isn't optional it's a legal requirement. Yet as the poster above says, when you select a delivery destination outside the UK/Europe, where VAT should not be charged, the VAT tax line disappears - BUT the price displayed is still that including VAT. Whereas what should happen is the Price is reduced so it excludes VAT.



eg: price in TAX entered as £199.99. CS Cart correctly calculates this includes VAT of £33.33 for UK and EU customers (VAT 20% in UK). Customers outside the UK and EU should be Charged £166.66 but CS cart removed the VAT tax line from the checkout page but keeps the price at £199.99 - the VAT inclusive price.



We have installed V4.3.1 to test this out and it appears to have not been fixed. It seems weird, given that stores registered for VAT in Europe who sell outside of Europe can't essentially use CS Cart?!



Cheers!

Dan

I'm pretty sure if you set this up correctly using locations and tax, then it should work as expected. You might have to clear cache after changing settings and / or refresh the page you are on as visitor before you see the changes reflected.

We are in Uk and use ex vat (the inc vat total is shown underneath so both prices can be seen) then set the tax rates to be based upon delivery address thus when sending to non vat countries vat is removed



John

As far as I understand it (and been trading this way for over 12 years) the above method is fine

Quote from UK price marking order 2004 states as long as tax inclusive price is legible by a person with normal sight, in the above case it is.


[quote]The Order requires that prices must be “unambiguous, easily identifiable and clearly legible” but it is not prescriptive about the way in which those requirements are met. It does, however, require that consumers should not have to ask for assistance in order to be able to see a price. Legibility of price indications in this context means legible to a consumer with normal sight. Traders are, however, reminded of their obligations under the Disability Discrimination Act 1995 and to take account of the special needs of the elderly and disabled groups. When considering the needs of those with less than perfect eyesight, traders are encouraged to take account of the Royal National Institute for the Blind’s Clear Print Guidelines.[/quote]

vat.JPG

Hi John



Thanks for the info. We had seen this option to have both prices and enter the product price ex VAT. However our legal eagle has said that in the UK and Europe, when displaying both exVAT and incVAT to consumers, the incVAT price should be bigger and more prominent - but I note your quote! It is unambiguous!! But might see what they say.



Ideally, it would be good to switch the prices round (as in your illustration picture) so the exVAT in in the brackets - although this then makes you look more expensive to customers outside the UK and Europe - so you can't win really! í ½í¸Ÿ



Why the price cannot have the vat deducted from it for this scenario just seems a bit of a pain!



Cheers

Dan

[quote name='johnbol1' timestamp='1435172104' post='220239']

We are in Uk and use ex vat (the inc vat total is shown underneath so both prices can be seen) then set the tax rates to be based upon delivery address thus when sending to non vat countries vat is removed



John

As far as I understand it (and been trading this way for over 12 years) the above method is fine

Quote from UK price marking order 2004 states as long as tax inclusive price is legible by a person with normal sight, in the above case it is.

[/quote]



Yes I also think that is OK according to law but it's not commonly seen. Almost every shop only show prices incl vat in Europe. If your shop focussen more on end-customers, you could make the incl. vat price big and the other one small though so that might be an option.



You should also have a look at this add-on: CS-Cart VAT exempt | VIES verified and their show prices incl vat add-on which basically takes care of all this and more.