VAT calculation when using pricing including taxes - magento

The prices are including VAT Tax. The VAT % applied is based on the delivery address. When the delivery country is changed and the VAT % changes, the the amount incl. tax is changed.
For example:
An amount of 0.79 euro is calculated as tax which corresponds with a delivery adress in the Netherlands. 19% Vat is applicable.
Price ex VAT 4.94/1,19=4,15
VAT Amount = 4,15*0,19=0,79
This is working fine.
When a change the delivery date to the country Belgium, where the VAT is 21%
Then the all the amount including tax is increaded. This should not happen as we choose use prices including tax.
The calculation thats is made by Magento is based on the price excel tax when 19%
Dutch VAT was applicable and then applied 21 Belgian VAT:
Price EX VAT: 4,15 = wroing amount has not been recalculated
Belgian VAT Amount = 4,15*,21= 0.87 = wrong amount
The correct calculatio should be:
Price ex VAT 4.94/1,21= 4,08 = correct price excl 21% tax
VAT Amount = 4,08*0,21= 0,86 = correct 21% VAT Amount
Total price = 4,94 incl. VAT
For Belgium i get this price 5,02 and it should be 4,94.
Desired Outcome:
The amount incl tax should stay the same regardless of the VAT% applied.
How can i fix this.

In fact i don't think your reasoning is good.
i explain:
the base price value of the product is it VAT free value.
For a given country, the product is applied a VAT to comply with country VAT related rates.
For wathever country you deliver the product, what changes is VAT but not product base price value , otherwise you'll loose some margin.
Say:
product A VAT Free price is : 100 and you bought it 80 (20 eur margin)
VAT for Netherlands is 19 : Taxed price for Netherlands => 119
VAT for Belgium is 21 : Taxed price for Belgium => 121
Wanting to keep 119 for Belgium would make loose you 2 euros ,since you would have virtually sold it for 98.
If that's really what you want to do : ie , flat price whatever VAT Rate is applide ,Then a "trick" might be to create customer groups based on their country & used tier pricing to reduce product base price in order to maintain VAT rate independent taxed price. (which i wouldn't recommend)

Related

Magento 1.9 combine discount amount and subtotal

I'm looking for a way to change the subtotal before grandtotal in checkout and cart.
I want to hide the discount amount and add this to the final subtotal like this:
Current View:
Produkt #1 Price(10$) qty(2) subtotal(20$)
_____________________________
Subtotal 20$
discount -5$
shipping 5$
tax 0$
grandtotal 20$
What I want
Produkt #1 Price(10$) qty(2) subtotal(20$)
_____________________________
Subtotal 15$
shipping 5$
tax 0$
grandtotal 20$
I hope someone can help me with this.
Use observer, You must recalculate all value and save.

Magento - tax calculation for EU customers with 0% VAT issue

I have an issue trying to get the proper price calculation.
I have the following settings:
tax classes for products: taxable goods, shipping
tax classes for customers: AT Private, AT Company, DE Private, DE Company, CH Private, CH Company
tax rates: VAT DE 19%, VAT AT Private 19%, VAT AT Company 0%, VAT CH 0%
tax rule: VAT DE and AT Private for DE Private, DE Company, AT Private - VAT DE
tax rule: AT Company Customers for AT Company - VAT AT Company 0%
tax rule: CH Customers for CH Private and CH Company - VAT CH 0%
In the Configuration:
Sales -> Taxes is set:
Tax calculation - shipping address based
Catalog prices - incl. VAT
Default tax setting for Germany
Cart settings: prices with and without VAT
Origin country: Germany.
The issue is as follows:
Everything is fine when customer is from Germany or it is a private customer from Austria. But when customer from Austria puts his/her VAT ID Number and it is checked as a valid one, Magento doesn't show proper prices. It shows brutto price as it were netto one and gives 0% VAT. It should show netto price and 0% VAT.
Example:
Product brutto price is 100.
Customer from Germany and private from Austria sees in the cart 100 incl. 15,97 (19%) VAT,so netto 84,03.
Customer from Austria with valid VAT ID Number sees in the cart 100 incl. 0 (0%) VAT, so netto 100. This is a mistake. It should be shown 84,03 incl. 0 (0%) VAT.
When I change the catalog prices to be given as netto ones, the cart is shown correctly. But I need brutto catalog prices.
Does someone has a solution for this issue? What rule should I add / change in magento files, that the calculation would be proper?
Many thanks in advance.
Kristoff

How do I set up multiple shopping cart price rules for discount bands in Magento?

I need to apply multiple discounts like this:
When the order total is less than £50: No discount
When the order total is more than £50 but less than £100: £5 off
When the order total is more than £100 but less than £250: £10 off
When the order total is more than £250 but less than £500: £25 off
When the order total is more than £500: £50 off
I’ve tried so many different combinations but I cannot seem to get these rules to work. Please can someone give me instructions on how to set this up?
I am not sure if you have seen that post: Shopping Cart Price Rules.
So the basic idea is:
1) That you go have to specify in the tab "Conditions" the Cart Attribute Subtotal to the price that you want.Or greater than, equal or less..
2) On the tab Actions just add "Fixed amount of discount" and you are set.
For your example:
1) "Conditions" the Cart Attribute Subtotal equal or greater than 50
and again Subtotal equals or less than 100
2) On tab actio : Choose "Fixed amount of discount" and on Discount Amount put 10.
Hope it helps.
You have to create four rules as follows
Go to magento admin > Promotions >
1) First rule
If ALL of these conditions are TRUE :
• Subtotal greater than 50
• Subtotal less than 100
Actions tab
Discount Amount * 5
2) Second rule
If ALL of these conditions are TRUE :
• Subtotal greater than 100
• Subtotal less than 250
• Actions tab
Discount Amount * 10
3) Third Rule
If ALL of these conditions are TRUE :
• Subtotal greater than 250
• Subtotal less than 500
Discount Amount * 25
4) Fourth Rule
If ALL of these conditions are TRUE :
• Subtotal greater than 500
Discount Amount * 50
1) Select status active
2) Select proper website
3) Select Customer groups
4) No specific coupon
5) Proper from date and to date
for more reference
http://www.magentocommerce.com/knowledge-base/entry/what-are-shopping-cart-price-rules-and-how-do-i-use-them

How to assign a product to be taxable in multiple states?

My concern is I am developing a site in magento where client needs an ability to specify taxes per state at category or product level.
To be more specific, there are some products in the store that are taxable in more than one US states like electronic items are taxable in NY, NJ and CA.
Is there any way I can achieve this?
Magento allows for a lot a flexibility in setting tax rates. Go to Sales -> Tax -> Manage Tax Rates and specify as many rates as you'd like there. Rates can apply to whole countries, whole states, and specific zip codes.
In your use case for say - stereo receivers ( assuming there's a unique tax rate per state for this category of electronics ). You could do the following:
Create a product tax class: specialelectronics
Create a tax rate: usa-ny-specialelectronics ; usa ; ny ; * ; rate = 10%
Create a tax rate: usa-nj-specialelectronics ; usa ; nj ; * ; rate = 20%
Create a tax rate: usa-ca-specialelectronics ; usa ; ca ; * ; rate = 50%
Create a tax rule: specialelectronics; retail customer ; specialelectronics ; usa-ny-specialelectronics, usa-nj-specialelectronics, usa-ca-specialelectronics
Note you can only assign a product to one product tax class.

custom options price calculation

How does custom options price calculation work for a fixed and percent price?
I want to change percent calculation functionality from base price to total price.
Currently it's calculating price from base price.
How to change this from base price to total price?
For example:
base price = $10
custom option1 = $10
custom option2 = 10%
default Magento calculation:
Total price = Base price + selected custom option1 + selected custom option.
Total price = $10+$10+ 10% of $10(baseprice) = $21.
But we need this Total price after selecting the custom option:
Total price = $10+$10 = $20.
Total price after select custom option2
Total price = $20 + (10% of Total price)
Total price = $20 + (10% of $20).
Total price = $20 + $2 = $22.
I need to calculate the percentage from the total price, not from the base price. Please advise.
This is done in
Mage_Catalog_Model_Product_Type_Price::_applyOptionsPrice
If this applies only to special products, you might want to create an own product type with a customer price handler.

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