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Store App Tax

1 month 3 weeks ago #1

  • Markus's Avatar
  • Markus
  • Posts: 18
I just wrote a comment underneath the store app anouncement, but I thought it would be good to get it out in the support forum for better discussion.

The tax problem is really important (as it is required by law):

1. Displayed retail prices must include tax.
2. Tax percentage has to be visible in cart and checkout (and invoices).
3. If a promo code (ore any other discount) is used, is has to be deducted from the netto price and the tax has to be calculated from the new (discounted) netto price.

This means there is need for an option to set netto prices with at least 4 digets after the comma to get an even price with tax. When in cart or checkout the netto price must be displayed with only two digets after the comma. Then there needs to be a option to choose to show prices including tax on product pages or listings.

Alternatively could be a option to choose if the product price is including tax, all the calculation to show netto prices in the cart and checkout must then be done in the background. And point 2 and 3 are still neccesary.

I hope this is comprehensible and can + will be done quickly. Without changes to the tax calculation and displayed prices the whole store app is not usable for me. :(

Best regards
Markus

1 month 3 weeks ago #2

  • Paweł's Avatar
  • Paweł
  • Posts: 5
I sign under the post, it is a very important matter

1 month 2 weeks ago #3

  • Artem's Avatar
  • Artem
  • Posts: 8824
Hi there,

We can propose next solution:

1. To the tax settings we'll add new options: Tax Mode - Inclusive or Exclusive
Inclusive it's a for EU countries, Exclusive is what we have now - US

2. Also be possible to set base tax rate and set specific tax rate for each country

3. In the Checkout under the Total will be displayed line - Includes VAT € 7.56

4. In the Cart, title "Includes VAT € 7.56" will be displayed only if if you have no more than 1 country







Regards,
Artem, Balbooa.com

1 month 2 weeks ago #4

  • Markus's Avatar
  • Markus
  • Posts: 18
Hello Artem,

that would work. The checkout and cart line must have the percentage included, not just the amount:
"Includes 16% VAT € 7.56".


About the country settings - as long as they are optional, it is OK. As far as I know if you sell something (via shipping) to end-customers (b2c) in the EU, the rate from the sellers country (company country) has to be applied, not the rate of the buyer country. This is different if you sell b2b to other countries. For selling business to business to abroad businesses the buyer has to pay the tax and therefore needs the VAT number of the seller stated on the invoice and a "tax disclaimer" like "reverse charge according to §..." So this might be another setting you could include - to show the VAT number of the seller and a text field with custom text on checkout and invoice.
If you sell business to business within your own country the prices must be netto but the calculated has to be shown in cart and checkout. Exactly as it is right now.

You see the whole tax topic is really vast and can get complicated, thats why you for example have so many options in other shop solutions. But I like your approach to simplify things and the solution you stated should work for most business to customers shops/stores.

I appreciate your quick work.

1 month 2 weeks ago #5

  • Sergii's Avatar
  • Sergii
  • Posts: 10
Hello

B2C
I will give an example of a check from the store.
In Poland there are several taxes with different percentages of 5, 8, 16 and 23%. The check shows prices with and in total tax, total prices without tax and the tax itself with different rates of 5% for food, drink and other 23%.
The "House" and "Zara" stores have 23% tax and they put a price with tax on the goods, but the receipt necessarily shows how many people have paid tax.
Restaurants have a food tax of 8% and drinks and everything else 23%.
But since the restaurants have a small number of items, no one shares and does not show the price on the site, but in the check for the customer it is necessarily present. And in the end, such sites can not be automated without proper tax distribution.




B2B
When it comes to the sale of goods for business, be sure to be valuable with the inscription of net and gross, it is very important.
When I sell to a client in Germany from Poland, the price is always considered net, because he will pay the tax himself in his country!




Forms
It's a pity that you can't add products from app forms, it would solve many problems :)
Thanks to the forms, you can build a product card to suit your needs.
I just wrote the net and gross prices in the text, and in the shopping cart they were already paid with or without tax.

1 month 6 days ago #6

  • Artem's Avatar
  • Artem
  • Posts: 8824
Markus wrote:

3. If a promo code (ore any other discount) is used, is has to be deducted from the netto price and the tax has to be calculated from the new (discounted) netto price.

Just researched sites, on real sites, the discount calculated from Gross price (VAT included). You can check

www.adidas.de
www.adidas.pl




We focus on real sites


Regarding the Discount from the netto price. Here is an example:

Product price 100 € (Including 20% VAT)
Discount 50%

Calculation = (100 € - 20% VAT) = 80 € (Netto price) * 0.5 (discount) = 40 *1.2 (VAT) = 48 €
So, as you can see, 50% from 100 € is a 48 €, and it's very strange. And as you can see, Official Adidas doesn't use this method


Regards,
Artem, Balbooa.com
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