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topbeanbags

Help needed with multiple taxes

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We have a specific requirement for our website.

We have set a specific gross price of lets say Rs 1000.

We Sell a product in India which has more than 28 states or zones.
Now there are 2 scenarios: In my home state this product will have 5% vat(state).
and all other states or zones it will have 5%(state) + 2% (Central sales tax)

Now we want to make the price 1000 for all customers(within or outside my state)

So in my state the price of 1000 should include 5% vat
and in all other states the price of 1000 should include 5% + 2% TAX.

 

So basically this product will have one tax (5%) if sold within home state and 2 taxes ( 5% + 2%) if sold outside the home state.

Please help me to achieve this as I am new to prestashop.

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Prestashop is fantastic looking from outside but these small small things make it unusable for people like us.

I am forced back to opencart now which has fantastic Multiple Tax settings compared to Prestashop.

I hope Development team looks into this and implement this.

 

Regards

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So in my state the price of 1000 should include 5% vat

and in all other states the price of 1000 should include 5% + 2% TAX.

 

So basically this product will have one tax (5%) if sold within home state and 2 taxes ( 5% + 2%) if sold outside the home state.

Please help me to achieve this as I am new to prestashop.

 

What you are trying to do is not really typical, so it does not surprise me that it would not be supported.  I'm not sure what you are trying to do is even legal, surely in the US this would not be legal.  You are basically giving people a discount because of the location the live in.  Yes in the end everyone pays Rs1000, but those living outside the home state are actually paying less taxes, and I would imagine the local state collecting sales tax would have an issue with this.

 

This is what I would expect to occur for those living outside the home state

Rs1000 * 7% = 70 in sales tax  (government should be receiving Rs70 is sales tax revenue, and you should be collecting Rs1070 from the customer)

 

While those living in the home state I would expect this...

Rs1000 * 5% = 50 in sales tax  (government should be receiving Rs50 is sales tax revenue, and you should be collecting Rs1050 from the customer)

 

However what you are doing is subtracting the expected sales tax, so the actually product price sale is Rs930 or Rs950

Rs1000 - Rs 70 = Rs930.

Rs1000 - Rs 50 = Rs950.

 

So when you claim sales revenue are you going to report the sales as Rs1000 or Rs930? 

1) Either you claim Rs1000 and you are going to lose money to the government because you are going to have to pay them Rs70 in sales tax, which is not what you collected from the customer

2) Or you are going to claim Rs930, and you are only going to pay the government Rs65.1 in sales tax (Rs930 * 7%)

 

You also do not say if you need to show the customer the tax during checkout and in invoices and emails, so that is something that needs to be considered here

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Well I live in India not in US.

In India every seller has to pay 2 types of taxes :

- Home state VAT, which can be 12.5% or 5% or 4% or 1% depending upon which category it falls(for most items its 12.5%)

- Other is CST - 2%(Central sales tax) which is paid to central govt on the sales made outside the home state.

 

Now I don't want to confuse customers so I want to show only one price for all.

and depending upon their location they should be charged 1 or 2 taxes which should be bifurcated from the one gross price(1000)

 

Of-course I want to show tax breakup in cart, emails, invoice and where ever its possible.

Edited by topbeanbags (see edit history)

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BTW whats illegal in that.

its my article and I am free to set the price.

I don't want to upset the customers from outside my home state by charging more also it will be confusing to them to see one price in catalog and other while checking out.

 

Gross price should be same for all.

Its me the seller who will bear that 2% extra tax out of the total if the sale from outside my home state.

 

anyways thanks for responding.

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@doekia: pretty useless feedback, but thanks for chiming in I guess...

 

topbeanbags: you are free to set your product prices, no one is arguing that point.  however you failed to disclose how you plan to disclose your sales revenue to the government, so I was simply trying to point out that what you are trying to do might be illegal.  A government (us, india, canada etc..) functions and survives partly on sales tax revenue, it does not matter which country it is

 

so you are either going to incorrectly report this revenue and the government will lose money (illegal), or you are going to lose money to ensure that each of your customers pay the same amount regardless of sales tax (legal). 

 

Don't be surprised that an ecommerce platform that is trying to adhere to sales tax laws doesn't support your view of it (which is a pretty non-standard view of dealing with sales tax)

 

I would be interested in knowing any major ecommerce sites that collect taxes differently based on the customer's location.

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Nothing illegal in that as far as its about India Law.

Govt decides the Tax and we decide the prices.

 

anyways its me who is going to lose money to ensure that each of my customers pay the same amount regardless of number of sales tax. 

 

suppose the price is Rs 100 for article A.

so when someone frm home state buys it the tax beak up will be 100= 95+ 5(includes one tax)

and when some from outside the home state buys it the tax break up will be 100 = 93+5+2(includes 2 taxes)

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Well major ecommerce sites in India are market places like ebay and amazon, snapdeal, flipkart etc who doesnt invoice the customers directly, its the  merchant/vendor who give the tax-invoice to the customers.

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suppose the price is Rs 100 for article A.

so when someone frm home state buys it the tax beak up will be 100= 95+ 5(includes one tax)

and when some from outside the home state buys it the tax break up will be 100 = 93+5+2(includes 2 taxes)

 

 

So if you want everyone to pay the same price, then just configure the store to show prices including tax.  Then disable the tax system and make your life easier.  Then everyone will see the same price.

 

If you are going to absorb the loss in revenue when reporting to the government, then who cares how the tax structure in Prestashop is?  I think you will need to focus on sales reporting however, so that when tax time comes you can execute the report that would break down sales based on the orders address and then accurately report on the 5% or 7% tax.

 

 

Before calling my response useless, did you read the proposed calculator on https://www.prestash...5/#entry2003181

 

doekia: regardless of your feedback to the beta testing (which I have seen and agree with), your response to THIS topic WAS useless.  agreeing that a merchant can set their own prices and that laws in USA and India are different really helped here.  thanks for participating

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still I feel thats not the proper way to address this issue.

Because we are required by the law to give customers the tax-invoice with proper tax-break-up.

Edited by topbeanbags (see edit history)

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I will setup an demo opencart store and will show you guys how its working there on OC with the help of a 20 dollar module.

Just give me some time.

 

Thanks for responding.

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Because we are required by the law to give customers the tax-invoice with proper tax-break-up.

 

Then I would suggest that you just focus on customizing the invoice to apply your logic in a separate tax breakdown section.  Leave the product pricing the same across all customers and change the checkout experience to show prices as including tax.

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Hello Friends,

My Bad...The scenario that I described is only applicable for registered VAT dealers not for General public.

 

New Tax scenario for general buyers is somewhat like this:

Lets say I have 2 products A and B.

Now A is charged 5% Vat when sold in home state and 5% CST when sold outside home state.

and B is charged 12.5% VAT when sold in home state and 12.5% CST when sold outside the home state.

 

So basically we are charging VAT in home state and CST for sales outside the home state.

So how do I achieve this in prestashop??

 

Please help

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@topbeanbags: This what I am facing too, if selling in home state we have to file only the VAT, whereas in inter state sales we have to file CST only. 

 

What I was planning to do is sell the products through PS without any tax class assigned to the product and then generating invoices manually through vTiger, Quickbooks or Tally.

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Sorry for stealing the thread temporary for a tax related issue. [Concerning PS1.4.8]

 

Previously we had only domestically sales with local VAT. However, we recently started to sell tax-free to abroad. Now we need an easy way to separate orders that contain VAT from orders that where sold tax-free.

 

Any ideas? Clicking through each order manually to check VAT is not feasible. Going via customer address (country) and manually tracking back to order is even more work and also include customers from previous years.

Thanks in advance.

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Do you want to just see a list of orders? I can imagine two approaches - to patch the Orders admin page or use a module to print/export orders.

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In lack of better tools we have historically extracted the order data to excel and manually removed: returns, cancelled orders etc.
What remains is used to calculate the sales and VAT since previously the VAT has been the same for all our sales.

However, now the dilemma is to identify all transactions outside of EU, since they should have no VAT (Tax free). Our export countries are limited, mainly USA, Canada and Australia. As long as we can find a connection between orders and shipping country it can easily be adjusted manually in excel. However, currently PS does not seem to have any table that show linkage between order number and country.

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In theory you can go via customer address view and sort by country to locate the name of customers for the tax-free country, then find them manually and note them as export sales. However, this process is tremendously cumbersome since you need to do order by order.

Additionally the customer address view lack date so even if it is possible to do like this the first year, very soon this process will be infeasible all together when more and more of the customers are linked to orders from previous years.

We would prefer a process where you can use excel sort and filter capability rather than manually searching order by order with only customer name as the key between order and shipping country.

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In lack of better tools we have historically extracted the order data to excel and manually removed: returns, cancelled orders etc.

What remains is used to calculate the sales and VAT since previously the VAT has been the same for all our sales.

 

However, now the dilemma is to identify all transactions outside of EU, since they should have no VAT (Tax free). Our export countries are limited, mainly USA, Canada and Australia. As long as we can find a connection between orders and shipping country it can easily be adjusted manually in excel. However, currently PS does not seem to have any table that show linkage between order number and country.

Every order has 2 addresses associated to them.  A billing address, and a Delivery address. 

 

You join ps_orders to ps_address using the id_address_delivery or id_address_invoice.  Inside ps_address is the id_country which you can join to the ps_country table.

 

So it is quite easy to extract the country, you just need to determine which address you want to use, since the billing and delivery address can be different

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If you are on PS 1.5 or 1.6 then you can create a SQL query with all required data (and possible filters) and export CSV using the SQL Manager.

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Hello Bellini13,

We have extracted ps_customer for our news-letters so I know the interface as such. Our host (one.com) use something called phpMyAdmin.

 

However, my SQL knowledge is limited to some late night computer lab at university some 20 years ago, so if you know SQL you are more than welcome to write in very practical terms how the SQL query would look.

 

Not that it matter, but you can use id_address_delivery since I think that is the safe option for tax reasons.

 

Many thanks for your insightful and fast response!

As mentioned before we are still in PS 1.4.8, but regarding this table structure likly is same or similar (If needed I can rewrite the SQL query if needed when I understand the basic structure)

Edited by MacMaster (see edit history)

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This will export the order id, order reference, and delivery address country name for all the orders in your database

select o.id_order, o.reference, cl.name
from ps_orders o, ps_country_lang cl, ps_address ad
where o.id_address_delivery = ad.id_address
and cl.id_country = ad.id_country
and o.id_lang = cl.id_lang

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Sorry perhaps I was unclear. I really need the same contention that is shown in order overview of PS  back office: Order ID, customer name, order total, payment method, status and date + shipping country

 

If it is possible to limit the report by date it will be even better. Since it is normally a calendar year + few days in either end to verify correct year-end cut-off.

 

I do not think your query will give order value, payment method, status and date?

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I provided you with the basic query for the country name.  feel free to revise the query to fit your needs

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I had hoped for some quick and dirty not to spend too much time on refreshing my SQL. But learning is happiness, so why not. I will see if I can manage to work it out.

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On 3/29/2015 at 9:37 PM, topbeanbags said:

We have a specific requirement for our website.

We have set a specific gross price of lets say Rs 1000.

We Sell a product in India which has more than 28 states or zones.
Now there are 2 scenarios: In my home state this product will have 5% vat(state).
and all other states or zones it will have 5%(state) + 2% (Central sales tax)

Now we want to make the price 1000 for all customers(within or outside my state)

So in my state the price of 1000 should include 5% vat
and in all other states the price of 1000 should include 5% + 2% TAX.

 

So basically this product will have one tax (5%) if sold within home state and 2 taxes ( 5% + 2%) if sold outside the home state.

Please help me to achieve this as I am new to prestashop.

i am also facing the same problem , i want to apply taxes state wise for canada. For example, canada has 11 states and each state has different tax rates so how can be managed in presta shop to apply tax rate on product based on address postal code or state . If you find solution , also let me know thanks

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image.png.f681e52e44d19547869b1c10a574ad26.pngDecent need to accomplish something like this with mine

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