Configuring tax restrictions

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2 years 6 months ago #286842

-- HikaShop version -- : 3.2.2
-- Joomla version -- : 3.8.3

Hi,
I am really struggling to get the VAT to work correctly.
I want to ensure that customers (for instance) in the USA are not charged VAT.
I have created two tax zones - Europe and outside EU
I have a "default tax category"
in tax rules, I have created a rule
"Default tax category"> zero rated > zone: Outside EU
and
"Default tax category" > 20%> zone: Europe
Taxes are set to be based on the shipping address
However, VAT is still being charged.

Can you advise?
Thank you.

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2 years 6 months ago #286853

Hi,

If you don't want to charge VAT, then you don't need a tax rule/tax zone.
So you should only need a Europe tax zone and only a tax rule for that tax zone for the default tax category.
Note that before the customer enters his address, it's the "main tax zone" of the HikaShop configuration which will be used.
So if you selected a European country in there, all the customers will see the VAT until they enter their address during the checkout.
If you want to have the current zone to be dynamic before the customer enters his address, you need to use the geolocation plugin:
www.hikashop.com/support/documentation/7...hop-geolocation.html

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2 years 6 months ago #286873

Thank you.
I've removed the Outside EU rule.
So now default tax states 20% for Europe.
However, if I add a USA shipping address, nothing chnages.
I assume I have something badly set up elsewhere.
I'd like to get this correct before trying the dynamic option.

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2 years 6 months ago #286878

Hello,

Taxe zones are based on billing addresses and not shipping addresses, so you should make sure to properly change the billing address applied on your order.

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2 years 6 months ago #286988

Thank you. My test account has a United States billing and shipping address. It is still coming up with tax included. Here is the screen shot of my tax rule - I was using the tax group Europe, then also tried this method, including each country from the tax group

Attachments:

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2 years 6 months ago #287004

Actually, I've changed it back to the full Europe tax zone, as the individuals didn't seem to work correctly!

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2 years 6 months ago #286990

Hi,

I've done a test on my end on your website but I don't see the VAT on your checkout when I use an address in the USA ( you can check the address I used in the menu Customers for the name test_hikashop):
monosnap.com/file/jqNv04Z7lgI1HaUF3vbxswLHxDYJSD
Note that if you restrict only to individual, you should not fill the company field or the VAT field in the address. If you do, the user will be considered as company and thus the tax rule won't apply.

Last edit: 2 years 6 months ago by nicolas.
The following user(s) said Thank You: GB11

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2 years 6 months ago #287053

Thank you for looking at this.
The price in that snapshot (£3.99) is the price with VAT - all our prices are shown with VAT. I think I may be confused as to how the system works. I thought it took away the VAT amount?

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2 years 6 months ago #287058

Hi,

The system only takes away the VAT amount if you activate the "floating taxes" setting of the hikashop configuration. Otherwise, the VAT is added to the untaxed price that is configured in the product.

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2 years 5 months ago #287275

Thanks. Yes, I have floating taxes checked. Which means that it isn't taking away the VAT for someone in the US. Could you advise where else I might have something incorrectly set up?

Thanks

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2 years 5 months ago #287277

Hi,

When you are in "floating tax" mode, then, regardless of how your taxes are configured, the price entered in the product is the price that will be paid on the checkout.
If you entered 3.99 in your product, then the customers will be charged 3.99 for that product, whether they have to pay taxes or not.
So in the screenshot I gave, the only way to know if you pay taxes or not it to check if you have a taxes row between the sub total and the total rows.
And no, with the "floating tax" mode, the price 3.99 is the price with taxes, but it can also be the price without taxes when no taxes are applied.
If you don't want that behavior, then you don't want to use the "floating tax" mode but the normal mode where taxes are added to the untaxed price that is stored in the product.

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