Hi,
So I set VAT rate of 9% which is correct for Pharmaceutical Products in Romania.
My settings are price includes VAT.
When I do a test order for 10.00 GBP I see 0.83 GBP stated as the the VAT element.
It should be 0.90 GBP.
When I do a test order for 500.00 GBP I see 4.13 GBP stated as the the VAT element.
It should be 4.50 GBP.
These VAT people have the power to kill a business.
I provide one attachment as an example.
I must fix this, it is so simple math, so what can be wrong?
Will let you know what I find.
Regards,
Quote from: gearup on September 20, 2012, 07:30:04 PM
I must fix this, it is so simple math, so what can be wrong?
There is nothing to fix.... simple math ;)
The calculation of the value added tax is based always on the net price.
Price excl. VAT = 100%
VAT rate = 9%
Price incl. VAT = 109%
Hi gearup
Your thoughts apply if VAT is not included:
10.00 GBP * 9% / 100% = 0.90 GBP
But you've chosen prices including VAT, therefore VAT is calculated different:
10.00 GBP * 9% / 109% = 0.83 GBP
Regards Christoph
Hey guys,
forgive me I'm a little stressed right now.
Thanks for the input.
My boss convinced me it was wrong - I should have been more confident.
VAT (especially involving different EU countries) is just a bit scary for me.
Regards,