Wrong VAT at checkout!

-- HikaShop version -- : 2.3.5
-- Joomla version -- : 3.3.6
-- PHP version -- : 5.5.19
-- Error-message(debug-mod must be tuned on) -- : No error message.

I have a strange problem with a brand new HikaShop Business installation.
At the checkout I have 4 different payment options (PayPal, HikaShop collect on delivery payment, pre paid and pay when collect at store) the first two optin has fees added like PayPal has the regular PayPal fees and the HikaShop collect on delivery payment I have set up as 50 SEK as this is regular payment for that service.
Now when I choose either PayPal or the HikaShop collect on delivery payment all amounts are added correctly to the order but the VAT, that always are 25% in Sweden on products like they sell , is calculated wrong.. and the strange thingh is that the difference is always 10 SEK between the correct VAT amount and the VAT amount calculated by HikaShop.
WHere does these 10 SEK come from?
Please I need help to pinpoint the place I have to edit in order to get these 10 SEK to go away...
Regards
Micke

Hi, sorry if I messed it up a bit.
Here are some screen shots from the check out and also settings for the payment options PayPal and COD (Cash On Delivery).
I have marked them with information as well. The thing is that VAT gets calculated wrong when I choose the payment options Cash ON Delivery or PayPal as they have fees added to them. But I don't know what is wrong in the set up.
THe amount is constant 10 SEK too low which is making it even more strange to me. No matter how big the total is the VAT is always 10 SEK too low calculated.

Hi, sorry when choosing PayPal payment the amount is not constantly 10 SEK too low so that is only occuring when choosing Cash On Delivery as payment.
But PayPal as payment option gets the VAT also wrong calculated.
It seems like this VAT calculation error occur on also my two other sites where you can choose COD as payment.
So something must be wrong with that plugin settings (HikaShop collect on delivery payment plugin), that I hav done... but as far as I can see there is nothing that can cause this strange calcukation error unless there are some combinations with shipment and payment that causes this.
Has anyone seen this except from me?
With this error you can't sell products to any business customers as VAT has to be correct.

I have checked this again and now I think I know the reason with the miscalculation. It is simply bevcause there is no VAT calculated on the Collect On Delivery (Cash On Delivery) payment option.
So what I did is to set Cash On Delivery up as a Shipment option only and ad VAT normal tax option so that solved this part.

The thing that still isn't solved is how to get PayPal as payment option set up correctly.
Is that also supposed to be set up as a Shipment method?
That doesn't make sense at all... but I might be wrong and the fact might be that there is no additional VAT on PayPal services so the VAT calculated when PayPal is choosed as payment option shouldn't be calculated in the total.
I mean PayPal has a fee of 2.60 SEK and a percentage part of 3.4% on all orders, which to me means you should set this up in the
Paypal payment plugin option like this:
Price: 2.60 SEK
Percentage: 3.4%
And then I'm fine?

Please confirm this is how PayPal shall be set up and that HikaShop calculations of VAT is correct then.
Thanks.

Hello,

Price: 2.60 SEK
Percentage: 3.4%
And then I'm fine?

Hello,
Yes Mohamed I want to add 3,4% as PayPal fee + the default 2,60 SEK that is constant.
The way I have done it seem ok but I am only not 100% sure that the VAT is correct.
Is it that way that PaYPal fees shouldn't be subject for VAT?

Hi and thanks Jerome and Mohamed for your support.
The answer is that setting it up like this, when living in Sweden is correct as Paypal Europe has it's headquarters in Luxembourg. That means it's business outside Sweden and therefore no VAT so that means you're ok to set it up like this in Sweden at least.
/Micke

Uhm... Why is this option not available for payment methods? In Sweden the VAT rules for payment fees are straight forward. Basically the VAT of a payment fee is the same as the vat of the product being sold. It is not always allowed to have payment fees. But you can take a fee when someone pays with an invoice for example.

Is it possible to calculate the VAT in hikashop for payment fees (invoice)?

If not... well you are basically exluding one whole country (and possibly even more) by simply not allowing this. Really strange honestly...

Hi, yes, same problem here in Switzerland.

I understand that is the same issue in most countries (at least in Europe) that thave straightforward VAT.

I actually don't think that the payment plugins need to be changed. I rather think that the VAT calculation should simply come after the payment fee, and not before, then it would be fine.

@HikaShop: Do we have any idea when this be available?

regards,
Chris

Hi,

I got the same problem for Germany! It can have very annoying impact in case you generate invoices with incorrect VAT amount! I do not know how to handle this but I cannot use it in this way

Best Regards
Holger

Hi Nicolas,

thanks for your suggestions - the one which would be compliant to law and would be quite smooth is from my opinion the negative auto load coupon. But for this it would be needed to have a possibility to limit this to orders with that payment method.
For you this topic maybe is a little bit ridiculous but I think it is relevant for a lot of european clients. So I really would appreciate if you could offer a workaround short term till you solved the basic topic. For myself I have to setup an alternative shop at least a workaround is available: I want to have get special payment method paid but risk with that implementation is too high for me...

Best Rrgards
Holger

Hi Nicolas. I am struggling with this one. I appreciate any help I can get.

I have seen other Hikashops "redirecting" the payment fee's to shipping fee's. Could you perhaps guide me on how to do something similiar like that?

So that the payment fees adds up to total shipping fees.

Best Regards,

Madjedo

Hello Madjedo,
You'll just have to directly add that fee on the "Price" option of your shipping configuration page ("Hikashop->System->Shipping methods->'YourShippingMethod'").

Hi, we have a similar issue as LAMF. It seems that the VAT is wrong in certain circumstances. We have paypal setted as 0,35€ + 3.4%. The final total with VAT is correct but the VAT amount is wrong. Seems like the VAT of payment method is not added to the total VAT amount. It really seems a bug.