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GST inclusive for NZ, full total for rest of the world. 
 
tin_soldier
Jr. Member
 
Total Posts:  26
Joined:  2008-08-29
 

Wondering if anyone knows the answer to this. It seems easy but I’m not sure it is.

I know how to setup the Tax Zone and Tax Rule to make Taxable Goods inclusive of 15% GST for NZ only.

I am entering prices inclusive of tax so a product which is entered with a price of $100 shows GST of $13.04 in the cart.

When the shipping address is anything other than NZ, the price becomes exclusive of GST. Although this is technically correct most clients want to sell the product to the rest of the world at $100 (the full amount) with no tax component.

I know I can set the ‘Tax Calculation Based On’ Shipping Origin which effectively means everyone is charged GST but surely that has ramifications for accounting later on (I may have to integrate a Xero hookup).

Is there a better way to achieve this?

 
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patrickyan
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Total Posts:  9
Joined:  2012-06-17
 

I would individually just make it clear in the sale contract and put as $230k plus GST . So really selling for $264,500 including GST, but as zero rated would set at $230k

 
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tin_soldier
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Total Posts:  26
Joined:  2008-08-29
 

Thanks for the response but that doesn\’t really answer the question.

My client wants to show GST inclusive prices which are nice round amounts and have the full amount as the cost for non-NZ customers. So in effect everyone pays the same amount but if a NZ customer buys then 15% goes to the taxman.

ie;

NZ customers:

Cost = $100
Tax = $13.04
Total = $100

Other countries:

Cost = $100
Tax = $0
Total = $100

 
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FOOMAN
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Joined:  2007-12-13
Auckland, New Zealand
 

I currently don’t think there is an easy solution and you would need to code something which switches the calculation/prices on the fly or set up different stores with different settings and reroute the customers based on origin.

Additionally I don’t think your client is doing themselves a favor. Other countries (Germany for example) are not as generous in their allowance to import items tax free. Ordering your $100 item would already be above the threshold and would essentially mean I pay sales tax twice. Needless to say your pricing either needs to be very competitive or a very unique product.

 
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tin_soldier
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Total Posts:  26
Joined:  2008-08-29
 

Thanks for your expertise here Fooman. I get what you are saying but in my opinion most customers won\’t be thinking that way.

If you look at some of the most successful NZ online stores (Mr Vintage for example) they show one price on the product page which doesn\’t change when you buy from overseas. It\’s either understood or stated that the price includes gst in NZ. Presumably the invoices would state the gst amount when billing to NZ and show no tax on the rest. The total would not change however.

It\’s just a pity there\’s no simple way to do this in Magento without extending the core. I don\’t think store views would be the answer as the tax should be based on billing address not where the customer\’s ip address is (VPN\’s and the like would stuff that up anyway).

I could just have no tax set at all and just state that the price includes gst, according to the IRD website as long as the invoice states that it, is legal. I wonder whether that would make things difficult for integrating with Xero though?

 
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setyadwi
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Total Posts:  2
Joined:  2013-04-09
 

I really appreciate this because I was looking for a perfect thread. Thankyou

 
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