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UK VAT !?


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This isn't a bug as such but it's confusing the heck out of so thought I'd post here.

Is there no way in v4 to show prices inclusive of VAT?

On a UK store when you enter a price (in the product page) for the sake of argument £10, that wants to be the price I would want it to sell for. If you are VAT registered and have the VAT option ticked, it doesn't want to be adding £1.75 when the customer is actually in the cart page, it simply wants to be breaking the total down so in the cart it shows

Item: £8.25

VAT: £1.75

Total: £10

This has been the biggest single issue I've faced with cubecart over the years and is a real problem. Why is it so hard to show VAT inclusive prices and work out the VAT in the cart. As far as I know this is the only cart that can't handle VAT properly.

By law UK companies that are VAT registered have to show VAT inclusive prices on the site, but at present this isn't possible.

I paid someone $100 to modify my last site just to work VAT properly and was really hoping it would be fixed in this release.

Anyone any thoughts on this?

Cheers Tim

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Guest Brivtech

Actually, this is very important - Retail includes VAT, whereas trade adds it on. Also, to remember, not all CubeCart stores will be tax registered.

Generally, retail purchases don't need a VAT breakdown. The only time that VAT actually needs to be shown is if the receipt will be used to claim back VAT by a VAT registered company.

This is why the vast majority of high-street stores do not show VAT on their receipts - There is no requirements, but you'll find petrol stations generally do - Because petrol is a comodity that's expensed back by companies on a frequent basis.

Perhaps the best way of addressing this would be to have a selection (in the Config > Taxes section) as follows:

Display net price (VAT added in Checkout)

Prices Gross Amount (Vat included in store prices)

Obviously, different countries have different ways of applying tax, anyone who knows about General Sales Tax (GST) will know that the net price is always quoted on retail sales, with tax applied afterwards at purchase.

I do agree that the taxes could be a little more flexible, and it wouldn't take much programming to do it. It was in my list of mods to program, but I'd me more than happy for Al and Martin to do it.

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Brivtech, that is exactly what I was thinking and how most other carts work.

By saying you need to show VAT, on online purchases over the internet you do need to state that the prices shown are inclusive of VAT. If they aren't then you have show the including VAT price for the item on the same page.

Being VAT registered I need to site to show inc. VAT prices and just a breakdown in the cart.

http://www.tradingstandards.gov.uk/cgi-bin...adv087-0100.txt

This is definately the single biggest issue I had with v3 and really needs fixing.

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Guest Brivtech

The trading standards article is definetly worth reading, and explains what I was trying to say in much better words and detail.

What are the consequences of non-compliance?

Failure to comply with these requirements is a criminal offence.

... and as CubeCart (although an international product) has a significant UK customer base, it would be nice if the software made it a little easier for VAT registered companies to comply with the relevant laws.

I'd be interested to know if anyone from overseas would consider the existing tax system that CubeCart uses as suitable, or whether this is not only a quirky UK tax law nusience.

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Guest degsey69

Estelle did the tax part of CubeCart V4, perhaps it can be modified to show both inc vat and ex vat.

She did it for me on CC3 and it could easily be incorporated in the final version.

I can not use the new version until I have the capability of this.

Degsey

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Guest Brivtech

With all due respect to Estelle, she is based in the USA, and perhaps she hasn't fully realised the important differences that the UK VAT system has to the tax system used in the USA. I still can't understand why this functionality wasn't programmed into the system.

I'm sure if anyone can program some changes to the tax system to accomodate what we're discussing, Estelle has my full confidence. I've used some of her mods in the past, and I've been very happy with the way they've worked, and how they've been integrated into the system.

Estelle, I hope you're taking notes. :w00t:

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  • 2 weeks later...
Guest estelle

With all due respect to Estelle, she is based in the USA, and perhaps she hasn't fully realised the important differences that the UK VAT system has to the tax system used in the USA. I still can't understand why this functionality wasn't programmed into the system.

I'm sure if anyone can program some changes to the tax system to accomodate what we're discussing, Estelle has my full confidence. I've used some of her mods in the past, and I've been very happy with the way they've worked, and how they've been integrated into the system.

Estelle, I hope you're taking notes. :yeahhh:

With all due respect :^^: Just because a store uses US dollars, doesn't mean its based in the USA. I'm based in Australia and here all prices must include GST, so I know all about it. I have two tax mods, the latest one was released several months ago and was designed specially for UK/EU/AU stores and fixes all of the problems associated with showing tax inclusive prices.

Third party products cannot be discussed in these forums. If you want to discuss these mods any further, please go to cubecartforums.org or contact me directly.

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Guest Brivtech

Just because a store uses US dollars, doesn't mean its based in the USA. I'm based in Australia and here all prices must include GST, so I know all about it.

Which begs to ask - Why doesn't CC accomodate this then? Sorry for the nationality mix-up. :yeahhh:

See, we were all under the impression that tax was going to be improved for CC4, and therefore we wouldn't have this problem.

Looks like this assumption was wrong - Hence the headaches! :^^:

Martin is apparently on the case about this, but the corrections won't be made until a later release of CC4 (4.1.0 he mentioned).

Looks like a third party fix is the only solution in the mean time.

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Guest estelle

Oops, sorry, didn't even realize I was looking at a thread in the CC4 forums! :yeahhh: I haven't had a look at CC4 yet so I don't know much about it, but I believe my original tax mod has been incorporated into it, in some form. This mod largely fixed the tax problems associated with Canadian/USA stores.

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  • 4 weeks later...

Item: £8.25

VAT: £1.75

Total: £10

:ninja:

I hope your not calculating your VAT like that as you will be paying too much!!!!!

I posted on the blog and brooky said it was being sorted, but I dont know when. I really dont understand why it hasnt been fixed earlier its a major major major bug (and nearly all UK stores are breaking the law!)

If any of you high up people in cubecart are reading this, i have a little bit of experiance in understanding how this shold work.

Have an option in admin to show vat inclusive or vat exclusive prices in the cart

There are two different types of vat invoices one that is directed to business to business transactions and one for retail. Business invoices normally have items shown with out VAT and a complete breakdown for each section, retail invoice dont show vat exclusive prices as it confuses the customer it just needs a VAT breakdown somewhere on the invoice.

Hope that makes sense!!!

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