Charge the same price everywhere, and absorb the VAT

  • Resolved OC2PS

    (@sooskriszta)


    3 years, 7 months ago

    As a UK business, we want to have the customers pay exactly the same price in all countries. Whatever VAT is chargeable, we want to absorb that into the price.
    e.g.
    UK customer pays 10 GBP (8.33 GBP net, 1.67 GBP VAT @20%)
    DK customer pays 10 GBP (8 GBP net, 2 GBP VAT @25%)
    I thought I would be able to achieve this by telling WooCommerce in settings that I am entering prices including VAT.

    But no. The way WooCommerce uses this information, it seems, is that it calculates net price from my tax inclusive price based on the home market VAT rate. Then for other markets, it applies the respective VAT rates, making the net price the same for all markets and VAT-inclusive price different.

    This Sep 2020 post says what I am trying to do is a common request, and offers a solution for v2.5.x

    So, questions:

    1. By the time of the aforementioned post, v4.5 had been released. Then why does this solution refer to v2.5.x, esp. considering there are major breaking changes – 2.6.x to 3.0.0 requires a developer migration. More to the point, what’s the solution for newer versions, e.g. 5.7? Can the suggested v2.5.x solution be applied to v5.7 unchanged?
    2. If this is a common request, why is the solution not being merged into the core, instead of being provided as a code snippet? esp. since the “code snippet” is really just a filter, meaning that the functionality is already available in the core.
    • This topic was modified 3 years, 7 months ago by OC2PS.
    • This topic was modified 3 years, 7 months ago by OC2PS.
Viewing 5 replies - 1 through 5 (of 5 total)
  • Mirko P.

    (@rainfallnixfig)

    Hi @sooskriszta,

    What I understand from your description is that you’d like your customers from different countries to pay the exact total amount including taxes for a product, is that correct?

    Since each product can have one price but at the same time will have different tax rates applied according to the country where the customer is based, the total amount shown to the customer to pay will not be the same.

    In that case, a workaround would be applying an automatic percentage discount based on country (e.g. 5% for DK customers) to the total price so that DK customers in this specific example will have a 5% discount and pay the same price as for UK customers.

    You can apply discount rules using plugins like these ones below:

    Hope this helps.

    Thread Starter OC2PS

    (@sooskriszta)

    you’d like your customers from different countries to pay the exact total amount including taxes for a product, is that correct?

    Correct.

    This Sep 2020 post says what I am trying to do is a common request, and offers a solution for v2.5.x

    What about this Sep 2020 post (referred to in my original post)??

    Also, it appears you haven’t answered either of my 2 questions:

    So, questions:
    1. By the time of the aforementioned post, v4.5 had been released. Then why does this solution refer to v2.5.x, esp. considering there are major breaking changes – 2.6.x to 3.0.0 requires a developer migration. More to the point, what’s the solution for newer versions, e.g. 5.7? Can the suggested v2.5.x solution be applied to v5.7 unchanged?
    2. If this is a common request, why is the solution not being merged into the core, instead of being provided as a code snippet? esp. since the “code snippet” is really just a filter, meaning that the functionality is already available in the core.

    I appreciate that moving plugins is WooCommerce’s business model, but in this case the suggested plugin is not even a good solution – unless you consider setting up rules for every single country, and updating those rules every time a country changes its VAT rates to be a good solution.

    The code snippet/ filter referred to above, on the other hand, IS a good solution, so would really appreciate if you could answer the 2 questions pertaining to it.

    • This reply was modified 3 years, 6 months ago by OC2PS.
    Mirko P.

    (@rainfallnixfig)

    Hey @sooskriszta,

    Thanks for getting back.

    Let’s step back a bit to your original message.

    UK customer pays 10 GBP (8.33 GBP net, 1.67 GBP VAT @20%)
    DK customer pays 10 GBP (8 GBP net, 2 GBP VAT @25%)
    I thought I would be able to achieve this by telling WooCommerce in settings that I am entering prices including VAT. But no.

    I’ve performed a test for you on one of my test sites and it looks all working okay to me. Both products from the UK and DK have the same total price (GBP 10.00) but different VAT tax rates, GBP VAT @20% for UK and GBP VAT @25% for DK.

    DK Product

    UK Product

    If you’re not seeing this on your site then something is not working as it should be and you can perform a conflict test.

    If you want the default behavior to be changed/revised you’re always welcome to add your idea to our Ideas Board. This is where developers go to look for future plugin features and improvements.

    Just a friendly reminder that this forum is open to anyone and all WooCommerce users (not customers) can contribute with their replies to help other users. Here, we’re also not tax professionals so our advice is how to use our software. For a WooCommerce tax guide you can consult this page:

    https://docs.woocommerce.com/document/woocommerce-shipping-and-tax/woocommerce-tax/

    With regards to any issue open in Github you can follow up directly with developers there as they may not hang out on this forum.

    Thanks.

    Thread Starter OC2PS

    (@sooskriszta)

    This documentation page says:

    “Yes, I will enter prices inclusive of tax” means that all catalog prices are input using your store’s base tax rate.
    For example, in the UK you would input prices inclusive of the 20% tax rate e.g. You enter a product price of ￡9.99 that includes ￡1.67 tax. A customer in the UK would pay ￡9.99 as defined, and a customer in the US would only pay ￡8.32.

    Hi @sooskriszta

    As this thread was closed long back, could I request you open a new thread with your current question, as we want to ensure your question does not get missed? Please open a new topic here – https://www.ads-software.com/support/plugin/woocommerce/#new-topic-0

Viewing 5 replies - 1 through 5 (of 5 total)
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