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UK Shipping VAT issue


ShaunJUK

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I hope I can manage to explain this properly. I have searched the forums and although others have asked the question nobody seems to have replied.

I run a UK shop with products sold attracting 3 rates of VAT. 0%, 5% and 20%.

When i charge for shipping and handling VAT rules state that the VAT on the shipping and handling should be the greater of the VAT rates used on the order.

So for example:

Order has a purchase of a product with 20%, a product with 5% and a product with 0% then the shipping VAT is 20%

If the order didn't have the product at 20% then the shipping VAT would be 5%

As most of my store has products at 0% getting this wrong can result in a big bill from the tax man in error.

Does anyone have any ideas?

Thanks

Shaun

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