I have problem to add taxes in my project..
I want to add first excise duty as 6% to my product.
And then Apply vat as 5% on total amount.
I would create on Tax called Duty6 defined as:
Tax Computation: Percentage of Price
Amount: 6
Advanced: Affect base on subsequent taxes ticked
Then I create another one called vat5 defined as
Tax Computation: Percentage of Price
Amount: 5
On the product when you sell you need to add duty5 and then vat6.
Hope it helps
Related
We are exporting Magento orders to another platform and have noticed what seems to be a major issue in the tax calculation; hoping you guys can help..
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In the example above; we have a shipping fee £6.95 (inc tax), a discount £5.80 and a product sales price of £116 (inc tax).
Total Inc. Tax is correct:
(£116 + £6.95) - (£5.80) = £117.15.
The Tax charged however is showing as £19.53 which I just can't replicate..
I've tried:
20% of £116 = £23.2
20% of £116 - £5.80 = £22.04
No permutation seems to deliver amount of tax charged that Magento is stating: £19.53
Can anyone shed some light on this for me?
Thanks in advance..
These figures are tax inclusive:
So convert them to tax exclusive by dividing by 1.2.
96.667
5.792
-4.833
Now that adds up to 97.625. 20% of that is 19.525 which needs to be rounded up to 19.53. The government wants all the half pence amounts!
The original tax inclusive amounts added to 117.15 so subtract the tax and you get a pre-tax amount of 97.62.
I am going through the admin panel of magento understanding each field in detail before traversing to next. I got stuck at these two fields(dropdowns) which says
Apply Customer Tax : i) before discount, ii) after discount
Apply Discount On Prices: i) excluding tax, ii) including tax
Let's say we opted for "after discount" for question 1, apply customer tax. This means First Discount, Next Tax, which indirectly means "Apply discount on prices" -> "excluding tax".
In short, question 1 indirectly talks of question 2. What is the necessity of question 2. If they are not dependent please give some realtime examples. Thanks.
Apply Customer Tax -
From this option you can select whether the tax should be applied before or after a discount. By default, it's set to Before Discount. If you want the tax to be applied after a discount has been applied, just select After Discount. This, of course, will have an effect on the final price.
Let's illustrate it with an example. For instance, let's assume that the tax is applied before the discount, the tax is 10 percent and a customer orders a product that costs 100 dollars; this makes the total price with tax 110. The customer has a coupon for 10 percent discount and applies it which makes the final price 100 dollars (the discount is applied on the original price of the product excluding the tax). Now if we set the Apply Customer Tax drop-down to After Discount and we use the same example the final price will be 99 dollars because the 10 percent tax is applied on the price after the discount, which in this case is 90 dollars (100 dollars original price minus 10 percent discount).
Apply Discount On Prices -
By default, discounts are applied to the original price of the order before the tax is applied. If you select Including Tax, the discount will be applied after the tax is applied to the original price. This setting is connected with the previous one.
Check the description of the previous setting to see an example of how both settings work together when the Apply Discount On Prices option is set to Excluding Tax and the Apply Customer Tax option is set to Before Discount and After Discount.
Now we'll use the same example to illustrate what happens when you change Apply Discount On Prices to Including Tax. So the ordered product is 100 dollars, the tax is 10 % and and the customer applies a coupon for 10 % discount. When the Apply Customer Tax option is set to Before Discount, the tax of 10 % will be applied to the original price of $100 which makes the total taxed price $110. The discount of 10 % is applied to this amount because the Apply Discount On Prices option is set to Including Tax; 10 % of 110 is 11, so the final amount is $99. In the same situation if we change the Apply Customer Tax option to After Discount, the grand total would be $97.90. The discount has to be applied on the taxed price which is a total of $110 ($100 original price + 10 % tax), and since the discount is 10 % that makes the discount sum $11 (10 % of $110), but the tax itself actually has to be applied after the discount is applied to the original price ($100 original price - $11 discount = $89). This make the final tax amount $8.9 (with 10 % tax) which makes the grand total 97.90 ($89 discounted price + $8.9 tax = $97.90).
For more detail please check this link
Magento System Tax Settings
I'm using the table rates (weight) to calculate the shipping costs. There are some products that have fixed shipping costs.
For example. I've a total of 7 products in my cart. 5 of these products are covered by the shipping rates. These 5 products have a total weight of 20kg. The costs of 20kg is €20.
The other 2 products have a shipping costs of €10 a piece. The weight of these 2 products must not be include into the table rates.
So the total costs of shipping is:
€20 for the first 5 products
and 2 times €10 for the last 2 products
So the total shipping costs has to be €40
Does anyone know an extension/ a way to fix this problem?
Check this extension it looks like it should have all requirements http://www.magentocommerce.com/magento-connect/WebShopApps/extension/1357/webshopapps-product-matrix-shipping
Does anyone know what algorithm Paypal uses to round? I'm doing some testing with discount promo codes on my site, and I'm coming up with different totals than what Paypal comes up with when I pass the same discount amount using the "discount_rate_cart" variable.
For example, a couple of items on my site total $309.95. Applying a 10% discount ( 309.95 * .9 = 278.955) should yield a total of $278.96, as .955 should round up to .96. However, when I pass the total $309.95 and the 10% discount to PayPal, they come up with a total of $278.95. They rounded down when they should have rounded up.
Does anybody know why this is happening? Please note, I'm not doing anything fancy like currency conversion here, just simple algebra for giving discounts on the total cost of the shopping cart.
So the algorithm is banking rounding but on a transaction by transaction basis. This means the discount is a transaction of its ow e.g.
10% of $309.95 is $30.995 and bank rounding is to the nearest even number being $31.00.
Therefore:
$309.95
-$ 31.00
========
$278.95
So theoretically if you had a discount of $30.987 this will round to $30.98 not $30.99.
A customer of mine suddenly has a strange problem.
For example:
Product A = 121,--
Tax = 21,-
So the subtotal should be 121,- incl. tax and the grand total also should be 121,- incl. tax.
But the grand total now is 100 incl. tax, so there is a problem with the calculation.
It looks like the tax is calculated good from products:
A product costs 23,95 incl. 21% tax
the subtotal excl. tax is than 19,79
the subtotal incl. tax is 23,95
And now the problem:
The endtotal excl. tax is 15,63 (so the tax calculated twice)
The grandtotal incl. tax is 19,79 (this is the excl. tax price from the subtotal).
Anyone?
OK, this has to be a bit of a guess rather than a definite answer but a classic gotcha that causes the sales tax to be doubled when displaying products inclusive of tax can be caused when you haven't set the shipping origin.
System -> Configuration -> Sales -> Shipping Settings and then set the origin to the country you are actually shipping from (ie your store normally) rather than the default United States.
GoTo System->Configuration
under sales -> VAT
under Calculation Settings
Set Tax Calculation Based On to Shipping Origin.