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Setting up tax/VAT


Guest peterhugill

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Guest peterhugill

I have been trying to set up for VAT, none of my prices include VaT.

So i want to add 17.5% at the end to both the product and delivery.

Been trying to do this now, but i cant get the tax/vat to display, or add onto the total

Anyone know how to do this or got a step by step guide to doing it.

thanks

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Hi

I have been playing about with this for a while but have eventually got there!

First go to Admin Panel>General Settings>Locale Settings (Between the Time & Date and Offline Settings tabs). Set "Add sales tax to customers who qualify?" to YES and "How to tax customer:" to whatever setting you require.

Next go to Taxes in Admin Panel. If you are just charging a flat 17.5% to all you can set Flexible Taxes to DISABLED. Make sure "Apply Tax ONLY to the following area:" is set to United Kingdom and ALL and edit the Standard Tax rate to 0.0000. In the empty box under Tax Class, enter VAT or whatever you like and enter 17.500 in the Rate value. Click Edit Tax. You could probably just adjust the Standard Tax to 17.500 and use that instead of creating a VAT. :)

When you are lising a new product, or editing one already in your store, make sure VAT (Or whatever you named it) is showing in TAX CLASS drop-down box. If you tick the "Prices include Tax:" check-box, the price of your product shows WITHOUT the tax in checkout, then the tax is shown under and added on to the item price, plus any postage you have set. E.g. If you list a product for £199.99, the SUBTOTAL will be £170.20 Plus £29.79 tax=£199.99. If you don't tick the "Prices include Tax:" check-box, tax is added to the actual price you set your product at plus any P&P. E.g. If you list a product for £199.99, the SUBTOTAL will be £199.99 Plus £35.00 tax=£134.99.

Tax will not be added to the price of P&P unless you set it to do so in your shipping method.

Hope that wasn't too confusing !

Good Luck

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