d-print wrote:
for example:
at the minute i have a test product @ £40
the Tax rate for UK is 15%
This works out at £6 TAX (which is currently being added to the final Total)
If i amend the price of the product to £34, wouldn't the 15% TAX be worked out on the £34 (not £40)?
therefore this would be
Product price £34 (excluding VAT)
Plus VAT @ 15% = £5.10
This then works out to be £39.10.
Hi John,
In your calculation you have calculated 15% of the price
including vat to get your price excluding vat. But this is not how you should calculate VAT.
public decimal GetPriceIncludingVAT(decimal priceExcludingVAT)
{
return ((priceExcludingVAT/100)*(100 + VAT));
}
public decimal GetPriceExludingVAT(decimal priceIncludingVAT)
{
return ((priceIncludingVAT * 100)/(100 + VAT));
}
So if you know that you want to sell your product for £40. Then to get price excluding vat:
= ((40.00 * 100)/(100 + 15.00))
= (4000/115)
= £34.78
So if you set your tax to 15% and save your product price as £34.78 when the customer pays for the product they will be charged like below:
Apple iPOD Touch 16GB MP3/MP4 Player
1
£34.78 (GBP)
Sub-Total: £34.78 (GBP)
Tax: £5.22 (GBP)
Shipping: £0.00 (GBP)
Total: £40.00 (GBP)
Is this not what you require?
I agree this is not the best work around as you will have to display your products with price excluding vat which is not the norm for most UK consumer sites.
Similar to sch09's suggestion you could override the tax value at the shopping cart to just calculate the vat using functions above and display this value to the customer.
Hope this helps,
Ben