Configuring Taxes :: Your Input Is...

User 471275 Photo


Ambassador
1,130 posts

Hi Scott, I am in the UK. Here is a link that will give you an idea how the vat works in the UK. I hope this helps.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4015895?cids=Google_PPC&cre=Money

ad99wd :cool:

User 484951 Photo


Registered User
2 posts

Scott Swedorski wrote:
Hello all!

We're starting to work on a way to effectively set taxes in Shopping Cart Creator. (Hooray!) As we all know, there are a lot of different ways to deal with this issue. What we want to do is make sure we address it in the best way possible and try not to overcomplicate things. So what we want to know is, if you already have a Web shop, how are you currently dealing with taxes?

A lot of countries seem to do things differently. What we are looking for is input, feedback, and real-world examples so we can make an accurate assessment of what we should do. We are trying to base our decision as much on factual information as possible. That means now is the time to really share your experience with us so we can make this new feature fit your business needs.

United States / Europe:

We know how taxes work in these areas. Even still, let us know what modifications we can make to help make the program work best for you.

Canada / Australia:

How exactly are PST and GST calculated? If you order something from one province and deliver it to another, which provincial tax applies? Are there any other taxes that either of these countries have to take into account when dealing with online sales?

We know this feature won't be perfect when we first launch it, but we will do our best to make it as powerful as possible. Still, we want to emphasize that we don't want to make it overcomplicated. One of the strengths of Shopping Cart Creator is its ease of use, and we'd like to keep it that way.

With that in mind, I welcome your suggests and comments.


In Ontario Canada, as a vendor I am obligated to charge both GST and PST on all sales of material goods. Note the word material because if I sell consulting services, I need only charge GST. So from an online perspective I would charge both if I am selling products that literally can be touched, e.g., a mouse trap.
User 325189 Photo


Registered User
22 posts

I live in Spain, and need to charge IVA (Spanish VAT currently 16% on most things, but there is a 6% rate for certain items), to any goods shipped within the EU. But if a company or person has a valid EU VAT number then goods can be charged without VAT. Also if goods are shipped to outside of the EU then no VAT is charged.
While I don't expect Shopping cart to check for a valid VAT number it would be nice to have a box to enter this. Then I could check it via the web to make sure its valid.
Something else to consider, many countries other than Spain have a variable VAT rate. So for certain goods its one value and for others its another value. an example of this are books, in some countries they have no VAT charged on them. So when the total invoice is added up there needs to be allowances for variable VAT rates and VAT exempt items. Probably quite a headache to get right.

User 548917 Photo


Registered User
7 posts

I dare not intrude where I have little knowledge so I cannot offer any how-to's, but I do need a way to charge Florida taxes that do not impose on those living in another state or my having to pay myself. I am unclear regarding how the "tax tag" may interfere with google or paypal processing the tax, but if it does, perhaps the "tax tag" could be disabled? Just thoughts.

Please disregard if it makes no sense. Thank you.
User 541154 Photo


Registered User
4 posts

As PopPicker & Reginald Pye have said, the Australian tax system is pretty simple, it is 10% gst on everything except for fresh uncooked food, its a national tax so all states are the same.

Also as stated we need to somehow have a no tax option for when we sell to overseas customers.

this is a tricky one, 1 item 2 tax options..hmmm

As for the document having "Tax Invoice" and the businesses ABN number on it, that can normaly be done at the suppliers end through their own invoicing system but would be handy to be able to include it somewhere within the shopping cart system.

For Australian uses the most important thing we need added to the current version on shopping carts is that the tax is included in the advertised price.

Hope that helps

Cheers
Wayne
User 52204 Photo


Registered User
32 posts

Hi

Just a point on Valued Added Tax (VAT) here in the UK and the EU, VAT is also applied to carriage (shipping).

This is a required option since only VAT registered traders would apply the tax.

Non-registered traders i.e. those traders who do not exceed the VAT registration threshold, would not apply the VAT to shipping charges.

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