Magento website ignores tax rates in checkout and doesn't remove tax from product price for some countries? - magento

I have been given a Magento website to fix. Essentially the company who has the website must display their prices with VAT/TAX of 20% on the site, and if the customer selects the United States the tax should be removed from the price of the products. The tax only really applies to the UK and the EU. The website has a tax rates list that specifies 20% tax for the UK and other EU countries that they have to charge tax to. There is a second rates list that specifies that Guernsey, Jersey and United States have a tax rate of 0.0. As well as this, the product prices are entered on to the system so that they are marked as including the tax. So when a customer selects United States, Guernsey or Jersey, the tax rate should be removed from the price of the product.
When the customer gets to the checkout and changes the country that the products are going to be shipped to, it seems that Magento doesn't seem to do this though. The price remains the same, even though the tax rates exist on the system for this to happen. I've gone through the settings all day, checked that the default country is set to the UK, that the products are set as Taxable Goods, that the tax should be calculated on the shipping address, but it just point blank refuses to remove the tax for these 3 countries.
What can I do?

Check also Shipping origing settings under:
System->Configuration->Sales->Shipping settings->Origin. It should be set to the country where the webshop is established.
Also double check: Sales->Tax->Manage tax zones and rates. Here you set the actual tax procents.

Related

Magento Enterprise set tax

I am using Enterprise Magento and what I need to do is set the tax so that is a customer is making a purchase and shipping to OH they are charged tax. However if they are shipping to any other state I do not need to charge Tax.
I logged into the admin panel moved my mouse over system then clicked configuration then under the sales section clicked tax.
I then have Tax Class for shipping set to Taxable goods
I also have Tax Based On the drop down is set to shipping address. In the section that is labeled Default Tax Destination Calculation I have the default state set to Ohio and the default country set to United States
when I move my mouse over Sales -> Tax then click Manage Tax Rules. I have a Product tax class which is set to Taxable Goods
I am not sure where else needs to be edited so that when a customer fills in their shipping address if the state they choose is Ohio tax should then be display'ed/added to the price listing
It sounds like you've found two of the three configuration points for Sales Tax:
General Tax Settings in System > Configuration > Sales > Tax (done)
Tax Zone Setup in Sales > Manage Tax Zones & Rates (not done)
Tax Class in Sales > Tax > Manage Tax Rules (done, but should be revisited after zone setup)
I didn't see in your description that you've set up a tax zone for OH yet?
Basically, you've told the system to calculate tax based on the destination address (global settings), you need need to tell it about the zones in which you want to calculate tax (tax zones - in this case just OH), and then which item groups you want to have the zones apply to (tax class - in this case all items in your Taxable Goods class).
The full walkthrough on setting up Tax Zones is available in the Magento documentation here:
http://www.magentocommerce.com/knowledge-base/entry/ce18-and-ee113-setup-taxes-step3

Magento tax issue, tax is not counted

We have a strange issue in one of our shops. We have set all the tax settings, it are the same settings as by all of our shops and by this particular shop in the shopping cart and by orders tax is sometimes not counted. So by some orders we see tax and by others we do not.
So if we look at a product in de admin of the shop we see the tax so know that tax is counted,but when we put it in our cart he will not take tax.
It is also not a country issue, because we have just one country to choose from.
Has any one had the same problem or ideas what can be wrong?

Magento - Tax Excluding Total and Including Total the same

I have spent nearly 2 days now trying to get these damn tax rules to work in Magento.
I have a product. I have one Product Tax Class. I have one Customer Group. I have one Tax Zone (UK # 20%). I have one Tax Rule for this zone, Product Tax Class and Customer Group.
The tax settings are as follows:
When I add a product to my cart, the product price is £695. The Cart totals are as follows:
This is clearly wrong. If the product price is £695 and I've specified that this price is excluding tax, then 20% should be added to this cost. At the very least, the two Grand Total costs should be different!
The two very last things I've done were to delete the cache manually (via FTP) and to re-index all the indexes.
There are two settings to break this configuration into.
For Tax display.
For Tax calculation.
If you check your shopping cart display setting you will find you stated display price, display subtotal and display shipping to include taxes.
Play with those display settings and you will get result.

Magento entering included prices

I have a problem with included tax prices. Example like this
I have a product included tax price $100
I want to enter this price from admin as $100.
But if shipping adress location is X country, it must be 5.26% tax.
If location is Y country, there is no tax.
I want to display price $100 for all of them in catalog pages.
But when user select X country then order, invoice and review must be displayed like this.
Subtotal $95
Tax $5
Grandtotal $100
When the second case i mean in Y country selected then
Subtotal $100
Grandtotal $100
If it's possible please help me. I burned out already.
I think the closest solution to your problem that magento can offer is
1. set price in admin including tax which means the price you enter while creating the product is price including tax. To do this Goto System->Configuration page. Click on the Tax section and under the "Calculation Settings" tab, set "catalog price " to "Including tax". Now price entered for the products are assumed to be including tax.
In the same tax setting page, set the "Display Product Prices In Catalog" as "Including tax".
Now set up tax rates and rules as your requirement in Sales->Tax -> Tax rules and Tax rates pages.
And there you have it.
Product prices in catalog listing will show product including tax, ie $100
And when you add product to cart. The cart will show
Subtotal = $100
Tax = $xx
Grand Total = $100
The easiest way to do this is to just set the price to 95 and setup tax rules using Magento's already built in tax rules. Login admin and go to Sales>Tax>Manage Tax Rules and Manage Tax Zones & Rates.
That will allow you to set tax for one country, and a different tax for another.
There is no pre-built way that I know of that allows you to have tax included in the price for some places and not others (if at all)
Maybe consider using the tax rules with Catalog Price Rules and do something similar.

Magento tax rates multiple countries

I whant to change our Magento CE 1.7 Shop to an multistore. So 2 countires an each has its own store but based on same products.
Now the 2nd country has different tax rates but the gross price should be same in both shops.
I have set the tax calucations based on the current county (set in system-config). So each Shop takes the corrent tax rates. And of course changed the tax reates for the 2nd country.
But now the gross prices in the shop are different. Even the product prices are set to be already including the tax rates. They get still recalculated.
e.g. county 1 has 19% tax and country 2 has 20%
Product 1 has a price of 70,90 in the backend and frontend. In country 2 its showing 71,50 in the frontend.
I dont want to set a new price for each product for the 2nd country. Isnt there a way to avoid the recalculation?
I think I found the solution.
I also have to set in system -> sales -> shipping settings -> origin country to the other country. Its not enought to change the Default Tax Destination Calculation Country and define the tax rules.
To hold a specific price by website/view you would normally do a catalog->item->price , select the website/store view from the drop down (top left), select price tab, unselect use default value and change the price to what ever you wanted displayed.
Changing the Shipping/Origin Address controls which tax rate is assumed when the catalog price = including tax.
Otherwise the system dynamically re-calculates the price including tax by figuring out the price excluding tax and then applying the new stores/customer's tax rate.
You should take a look at this, https://github.com/WMI/WMG_Tax , it recalculates the VAT properly.

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