Tax calculation on shipping (Dutch VAT)

Support
#1

Hi,

In the Netherlands shipping costs itself don’t have VAT. When shipping becomes part of a service (buying the product), VAT is calculated for the shipping costs.

This example shows how it should be calculated:

Product: € 14,95
Shipping costs: € 4,15
VAT: 9%

€ 14,95 / 1.09 = 13,7155963302 + € 4,15 = € 17,87 x 9% = € 1,61 btw.

(In the Tax configuration I have checked the options Included in price and Applies on shippings.)

Is this possible? Or do we need the Tax webhook?

#2

When taxes are included in price, they are for shipping as well. So I do not believe your calculations would work with Snipcart.

It would be ((14.95 + 4.15) / 1.09 ) * 0.09 = € 1.58 btw with a total price of € 19.10
Product: € 14.95
VAT on product : € 1.23 (14.95 / 1.09 * 0.09)
Shipping costs: € 4.15
VAT on shipping : € 0.34 (4.15 / 1.09 * 0.09)
Total Price: € 19.10 (14.95 + 4.15)
Total VAT: € 1.58 (from total price, 0.01 different with sums due to rounding)

To get the same amount, you would need to change your shipping price to € 4.55 ((14.95 + 4.55) / 1.09 * 0.09 = € 1.61 btw with a total price of € 19.50

Even with the tax webhook, I do not think you can have a single tax that is included in the item’s price and not in the shipping price. The tax webhook could be used if the tax is not applied on all shippings. Or you could have two different taxes, one on products and one shipping.

1 Like
#3

Thanks! Maybe the best solution for us is to work with product prices ex. VAT. Then both product prices and shipping are ex. VAT.

To get the same amount, you would need to change your shipping price to € 4.55 ((14.95 + 4.55) / 1.09 * 0.09 = € 1.61 btw with a total price of € 19.50

I think it’s required to have the shipping price ex. VAT on the invoice in the Netherlands. So this probably not an option.

Even with the tax webhook, I do not think you can have a single tax that is included in the item’s price and not in the shipping price. The tax webhook could be used if the tax is not applied on all shippings. Or you could have two different taxes, one on products and one shipping.

Thanks for clarifying this.