• Resolved tccand

    (@tccand)


    Hello,

    I’ve been trying to figure out how VAT is calculated for woocommerce order item fee.

    This are the cases that I tried:
    1 Product with vat 19%
    1 Fee of value 50
    In this case Fee will have a VAT of 9.50
    ——————-
    1 Product with vat 19%
    1 Fee of value -50
    In this case Fee will have a VAT of -9.50
    ——————–
    1 Product with vat 19%
    1 Product with vat 9%
    1 Fee of value 50
    In this case Fee will have a VAT of 9.50 (for the 19%)
    No other VAT will be added
    ——————–
    1 Product with vat 19%
    1 Product with vat 9%
    1 Fee of value -50
    In this case Fee will have a VAT of -8.16 (for the 19%)
    and will have a VAT of -0.64 (for the 9%)


    This is incorrect (i think…)

    Could you look into this?
    Thank you!

Viewing 9 replies - 1 through 9 (of 9 total)
  • Plugin Support carolm29 (woo-hc)

    (@carolm29)

    Hey there, @tccand! Thanks for contacting us. I’m happy to help you.

    Do you mind clarifying the fee you mentioned to us so we can better understand the issue?

    What exactly do you mean by “1 Fee of value”?
    Is this the price of the product?
    If it is, what do you mean by “1 Fee of value -50”?

    Do you have any products added to your store so we can take a closer look?

    It would be good to also be able to see how you set up the taxes on your store. Can you share some screenshots from the settings with us? I recommend using https://snipboard.io. You can share the direct link to the image as a response to this topic.

    Are you using any other plugin to set up taxes or only WooCommerce?

    Looking forward to your reply.

    Have a wonderful day!

    Thread Starter tccand

    (@tccand)

    Thread Starter tccand

    (@tccand)

    Hey, @carolm29
    Any updates?

    Plugin Support anastas10s (woo-hc)

    (@anastas10s)

    👋 hey @tccand

    Thank you for reaching back, clarifying things further.

    Just to note, the Add fee option is meant for adding a fee, such as gift wrapping. Further details can be found in the documentation linked here, for your convenience.

    Once you’ve done this, you can select Recalculate if you want to automatically perform new calculations based on store settings. This can be handy if you are adding or removing products, coupons, shipping methods, etc. Note that any tax changes that you’ve manually included will be removed, as the tax settings in your store will apply based on the customer address.

    I hope this is helpful! Please let us know if you have any further questions or concerns.
    We will be happy to help you further.

    Thread Starter tccand

    (@tccand)

    Hey @anastas10s,

    We have a module/plugin built on top of woocommerce. Some of our users use the order item fee with negative amounts.
    Woocommerce allows this.
    Our clients/users, so far, have not used multiple VATs with negative order item fees. But we have tested this case in order to know what happens.

    There are 2 problems with the order item fee:
    1. When an order item fee is added to an order with multiple VATs only the first one is added to the order item fee (I am not sure if this is correct, we have no problem in handling this case on our side)

    2. When a negative value order item fee is added on an order with multiple VATs, the VATs are incorrect (see my initial example)
    -8.16 is not 19%
    also in this case both VATs are calculated (should still be one?).


    Even if there are both VATs or only 1 the value should still be -9.5 for the 19%

    We can not treat this problem on our side. I would like to know if this is a functionality that is allowed but not recommended (negative fees) or something along this line.

    Thank you.

    Plugin Support anastas10s (woo-hc)

    (@anastas10s)

    👋 hey @tccand

    Thank you for reaching back, with further details on this.

    We have a module/plugin built on top of woocommerce. Some of our users use the order item fee with negative amounts.
    Woocommerce allows this.

    As I understand, you are referring to WooCommerce being open-source, therefore customizable/extensible.

    Moving forward, as this relates to bespoke functionality, built on top of WooCommerce, feel free to reach out to the module/plugin’s support channel, as they would be in a better position to assist you.

    Helping out with custom coding of this nature is outside the scope of support that our support staff can help out with here, although I would recommend the following:

    • Joining our WooCommerce Slack community (it does have a developer channel where you can ask coding questions): https://woo.com/community-slack/
    • Running the exact question you’re asking, along with the code provided, through an AI platform like ChatGPT for recommendations/changes to your code;

    I trust that points you in the right direction, but if you have more questions, let us know.

    We’re happy to help.

    Thread Starter tccand

    (@tccand)

    Hey @anastas10s,

    No, I am not talking about something we’ve built on top of woocommerce.

    I will try to simplify this as much as possible.

    On this page https://woo.com/document/managing-orders/#viewing-and-editing-a-single-order
    There is this information:
    “Add fee. You can enter an amount or percentage to add a fee to an order. Negative fees will apportion taxes between all other items, and will not make the cart total go below zero”

    I presented my case in this video https://www.loom.com/share/74711e21f55741f1a04d5066e4fc09a7?sid=8e691ea9-4507-4ee4-831d-8c6ab85dc8fd

    So please answer me this question.
    Which one of these options is it?
    A) In my video the order fee VAT(-50) is calculated correctly and the 19% should be -8.16 and 9% should be -0.64
    B) This is a bug the order fee VAT(-50) should be -9.5 for 19%.

    If A I would like to know why the value is 8.16 and how is it calculated.
    If B I would like to know if it will be fixed.

    Thank you!

    Plugin Support Shameem (woo-hc)

    (@shameemreza)

    Hi @tccand,

    In WooCommerce, when you apply a fee to an order, the VAT is calculated based on the tax rate(s) you’ve set up in your store settings. If multiple VAT rates exist, the fee’s VAT will be calculated based on the first applicable tax rate.

    When you apply a negative fee, the VAT is calculated in the same way, but the value is negative. This is why you see a VAT of -9.50 when you apply a fee of -50 with a VAT rate of 19%.

    However, when you have multiple VAT rates and apply a negative fee, the VAT is calculated for each rate and then summed up. This is why you see a VAT of -8.16 for the 19% VAT rate and -0.64 for the 9% VAT rate when you apply a fee of -50.

    If you believe this is incorrect behavior, I recommend creating a bug report here.

    I hope this clarifies your concern. If you have any other questions, feel free to ask.

    Thread Starter tccand

    (@tccand)

    Hey @shameemreza,

    I guess that answers my question.
    Based on your answer this is a bug:
    “If multiple VAT rates exist, the fee’s VAT will be calculated based on the first applicable tax rate.”
    If the value is negative the fee’s VAT is not calculated based on the first applicable tax rate (all of them are used, and the VAT is calculated “incorrectly”).

    Thank you for the clarification,
    I will continue this thread here.

Viewing 9 replies - 1 through 9 (of 9 total)
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