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UK Tax calculation issues
 
martcle
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Does anyone have an idea how to set multiple tax codes to a single product?

We provide property information products, that have elements that are normal VAT, IPT and zero rated. Can I merge 3 products (not displayed to the site user) into a single displayed bundle product and then on the invoice show the different codes.

Any help gratefully received as I’m sick of pressing buttons :(

 
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bins
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Dave,

re post 21, you do not (have to) charge VAT to goods shipped out os the EU

 
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da.v.id
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I’m having problems with tax on postage, as I want the system to charge tax on postage, but only when the goods being purchased are taxable, and this doesnt seem possible.

 
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robotone
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This is not a perfect solution but is a workaround to get started with a B2B International shop, giving customers the correct VAT calculation at checkout (once correctly registered)

1) I have setup two tax classes in sales->tax->customer tax classes

Standard UK Tax rates - charges VAT for all EU customers including the UK
EU (Non UK) Tax exempt Business - Charges VAT for only UK customers

2) In manage zones/rates I have setup the vat @ 17.5% for each of the 27 member states (import the attached file)

3) In the customer module setup two customer groups (you may need more):

General -> set the tax class to “standard UK tax class”
EU (non uk) tax exempt business -> set the tax class EU (Non UK) Tax exempt business
(you can leave the others)

4) in tax rules, I have setup two rules:

i) Standard UK Tax rules including eu countries for non vat exempt business - in this rule select

Customer Tax Class: standard UK tax class customer
product tax class: products and shipping
tax rate: VAT -> VAT26

ii) Customer Tax Class: EU (Non UK) tax exempt business
product tax class: products and shipping
tax rate: VAT

5) System configuration notes (non exhaustive)

Customer configuration:

Default group: general
Show Tax VAT Num: optional (there seems to be a bug here as the vat number is not defined in the customer login/registration page preventing login when set to required)

Sales->Tax Class for shipping -> Taxable goods
Display full tax summary -> yes
Default tax origin calculation: uk

So, now when a customer purchases for the first time (after validating their vat number) you have to manually move them from the general customer group to the EU Exempt business group (admin->customer). This is a one time setup, future orders will calculate the VAT correctly. We use a separate accounts system to do the actual invoicing (otherwise you would probably need the vat number displayed on all documents - orders,invoices etc).

TODO: Add some code to automatically switch the customer class once a vat number has been entered
TODO: Allow a vat number to be entered on checkout (BUG?)

Hope this helps,

Best regards

Mark

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Merlin Wireless
Bluetooth Wireless Communications and Proximity Marketing
http://www.merlinwireless.co.uk
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

 
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Dano007
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Sorry where is the attached file you mention with the tax rates etc ?

Thanks

 
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tjscgroup
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bump

any chance of the file you mentioned...or perhaps somebody else would be able to export their settings...will save a few hours of inputting all EU countries and fighting with non taxable UK zones (Jersey etc).

Many thanks in anticipation

 
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elfling
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Ok, sooo.. I was looking into this for the past 40 mins and I came up with this 2 step solution (Takes about 10mins). (more steps within those)

Step 1.

> Open up lib/zend/locale/data/en.xml

>Scroll down to territories.. add in territory IF it is not already listed.

> GG for Guernsey
> JE for Jersey

(luckily both these are already in my file)

Step 2.

> Go to PHPmyadmin

> Scroll down and click on directory_country

> Click SQL Query and type in

> “ SELECT * FROM `directory_country` “

or

delete where it says “where 1”

> Press go

> Then go to Insert

> Add these into the value box

New country code for Guernsey is GG, GG GBG

(Untick the ignore box underneathand continue to add)

New country code for Jersery is JE, JE, GBJ

*** Leave the function boxs blank ***

> Click go

New countries will now appear in your backend, so you can add Tax rules for these countries.

I hope this helps

elfling

 
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Chris K
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VAT TAX SETUP - ANY FEEDBACK APPRECIATED

(?) Question marks in brakets indicate points I’m not 100% on!

overview

I have a store Based in the UK that sells
a)Books - not VATable
b)Clothing and other items -VATable

I sell to customers all over the world. So I want to charge the correct amount of VAT depending on the Billing address.

I set this in: Admin>System>config>Tax>Tax Based On> Billing address

So then I went to set up Tax Classes Etc. in Admin>Sales>Tax>Manage Tax Rules

At this stage:
I have only one customer class - Retail Customers
I have essentially two Product Tax Classes:
a)Books - not VATable - 0% - CLASS NAME > ZERO RATED
b)Clothing and other items -VATable - CLASS NAME > Taxable Goods

Then When I went to manage my tax rates in Admin>Sales>Tax>Manage Tax Zones and Rates I realised that EACH COUNTRY NEEDS IT’S OWN TAX RATE - WITH AN INDIVIDUAL TAX IDENTIFIER.(?)

I came to this conclusion as when I set up a tax rule for the US with Tax Identifier - NON EU Export I was then unable to add the same rule for Australia as the tax identifier was the same. and it wouldn’t let me select more than one country per rule.

So I set up three tax rules -
1) NON EU Export - with US set as the country - rate 0
2) VAT 15% - with UK as the country - rate 15%
3) UK ZERO RATE - with UK as the country - rate 0

Then I exported the database table - tax_calculation_rate
Looking at the structure the values are:
“tax_calculation_rate_id”,"tax_country_id”,"tax_region_id”,"tax_postcode”,"code”,"rate"

And for my three rules:
“tax_calculation_rate_id”,"tax_country_id”,"tax_region_id”,"tax_postcode”,"code”,"rate"
“10”,"GB”,"0”,"*","ZERO Rated”,"0.0000"
“11”,"GB”,"0”,"*","VAT 15.00%”,"15.0000"
“12”,"US”,"0”,"*","NON EU Export”,"0.0000"

So now I can see how the tax rules are setup in the database I essentially need to modify the table so that each country by “tax_country_id” has a unique “code”

To do this I pulled some more information from the database to get all the country iso codes. I then added those codes to create unique tax codes per country:

so for the United States the code became US NON EU Export and Australia AU NON EU Export etc. for all the countries not in the EU.
For GB the codes were now:
GB VAT 15.00% and GB ZERO Rated
for France
FR VAT 15.00% and FR ZERO Rated etc. for all the countries in the EU.

I then updated the SQL table tax_calculation_rate - I had to do this by PHPmyAdmin NOT admin>sales>tax>import/export

So now in admin>sales>tax>manage tax rates each country has a unique tax code with the correct rate. EU countries have 2 rates at 0 and 15%

Now under TAX rules I can set three rules:
Retail Customer EU TAXABLE GOODS
Retail Customer EU NON TAXABLE GOODS
Retail Customer NON EU

I Can now set:
Customer tax class = Retail Customer
Product Tax Class = Taxable Goods
Tax Rate = MULTIPLE SELECTION OF ALL EU TAX RATES set to 15% now set per country ie. FR VAT 15.00%

Customer tax class = Retail Customer
Product Tax Class = ZERO RATED
Tax Rate = MULTIPLE SELECTION OF ALL EU TAX RATES now set to 0 per country ie. FR ZERO Rated

Customer tax class = Retail Customer NON EU
Product Tax Class = ZERO RATED
Tax Rate = MULTIPLE SELECTION OF ALL NON EU TAX RATES now set to 0 per country ie. US NON EU Export

This seems to calculate the correct tax.

Attached is the CSV tax table please have a look - BE WARNED I am not an expert and this is used at your own risk! ALSO if you open the CSV file in EXCEL you may run into problems. (i used a combo of excel and bbedit to get this to work)

EDIT: doesn’t seem to attach! if anyone has any idea why I’ll try and upload it again.

I’d like to hear thoughts on the solution and if I’ve made any glaring errors!

 
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View 6 Com
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Hi Chris

Good work, if you can Email / PM me the spreadsheet i look at this in more detail,

 
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Chris K
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PM sent.

I’ve managed to attach the table as a .txt file. Please take a look.

File Attachments
tax_calculation_rate(2).txt  (File Size: 13KB - Downloads: 1189)
 
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360tvr
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Hi Chris,

Thanks for this very useful - can you elaborate more on how you managed to upload your table? Also, as per previous messages in this thread I believe you have to base your tax rules on SHIPPING and not BILLING address for correct EU VAT calculations. The application or not of EU VAT is based on where the goods originate from and where they are delivered to within or outwith the EU.

 
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Chris K
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The method works for both shipping and billing address, so it’s just a case of changing that in the Admin>config>Tax.

To update the table the file was saved as a .CSV - BUT not in Excel as the format is different (excel doesn’t keep the “” around values in a CSV)
I then imported the table data to ‘tax_calculation_rate’ via PHPmyAdmin.

In PHPmyAdmin navigate to tax_calculation_rate then import. browse to the file press ‘GO’… cross fingers.

I’d always recommend backing up first!

 
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J_T_
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Hi Guys,

I thought I had set up everything correctly but as the first order from Jersey drops in, they are being charged VAT.

We sell full-VAT goods as well as 0-rated goods so each of my Tax zones has two rates:

Channel Islands Standard Rate of VAT United Kingdom * GY*,JE* 0.00
Channel Islands Zero-Rated VAT United Kingdom * GY*,JE* 0.00
United Kingdom Standard Rate of VAT United Kingdom * * 15.00
United Kingdom Zero-Rated VAT United Kingdom * * 0.00

The Channels Islands ones happen to be both 0 but for clarity, I need to have them both (and this is how I had it in osC).

I had assumed (can’t remember whether I tested it at the time, on 1.1.8) that my postcode filter would grab Jersey delivery addresses as being the Channel Islands VAT Rate but for some reason, Magento keeps pushing them in the United Kingdom category. Even if I put the exact postcode in there, it still thinks they’re UK, not Channel Islands.

I really don’t like adding Jersey and Guernsey (and the others, where we have actually shipped to before) as separate countries.

Why don’t these postcode filters work? Did any of you get Channel Islands 0-rate set up correctly?

 
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J_T_
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Turns out I hadn’t put this customer in a customer group that would trigger the rule. Done that now and it works.

But how are punters supposed to check-out with correct taxation if our staff first need to dump them in the appropriate group? How backward is that?

It’s silly it needs to look at it by customer. Forget the customer, just look at the delivery address, the product bought and then ideally whether they have a VAT number outside the UK but in Europe. This could do with some development still…

 
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Chris K
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@J.T

With this set up properly customer shipping address should automatically determine the tax rate without any manual assignment of the customer.

I think you might need need to set jersey and guernsey as separate countries. As i think magento assigns them separate country iso codes.

When I went to manage my tax rates in Admin>Sales>Tax>Manage Tax Zones and Rates I realised that EACH COUNTRY NEEDS IT’S OWN TAX RATE - WITH AN INDIVIDUAL TAX IDENTIFIER.

 
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