Tax problem EU vs International sellings

  • Hi,
    wondering if WooCommerce germanized can handle this problem?

    I’m running a WooCommerce shop based in EU/DE with version WP 6.6.2 using WooCommerce 9.5.2. I’m selling international, shop is configured to show prices including tax, MaxMind Geolocation is configured.

    For EU customers this works all good : Price is shown correct on products page 49,90€ incl. VAT, 19% VAT is shown correct in the Basket – all good.

    BUT for international customers (checked using VPN to USA) I have the problem, that Products page shows 41,93€ __with VAT included__, means it is the 49,90€ original price minus 19% what is completely wrong (big wondering here). That is without giving any address data, but Geolocation shows correct USA.
    There is no extra VAT calculation on the cart’s page, which is o.k. as there is no VAT to pay.

    So from my point of view the shop does not understand that an international buyer from e.g. USA does not have to pay VAT AND the shop is subtracting the 19% from the original price, what is completely wrong.

    Looking for the related configurations or I have to work on this to fix it.

    Check this form the WooCommerce support : https://www.ads-software.com/support/topic/problem-with-tax-calculation/#post-18222459

    THANKS!
    kraeMit

Viewing 5 replies - 1 through 5 (of 5 total)
  • Plugin Author vendidero

    (@vendidero)

    Hi there,

    what is wrong with that exactly? If you do not calculate taxes for third countries (e.g. USA), Woo subtracts the already included base tax (19 %, included within your price) from the product total. Please keep in mind that tax calculation is not part of Germanized – that is being handled by the Woo Core based on your tax settings/tax rates.

    You could install/use the OSS Plugin and choose the “gross prices for third countries” options to force your gross (base) price for third countries too: https://www.ads-software.com/plugins/one-stop-shop-woocommerce/

    Best

    Thread Starter kraeMit

    (@kraemit)

    Hi @vendidero,

    if a customer from USA buys a product with real price in my EU/DE based shop, I don’t take tax from him and I don’t have to forward tax here to finances in Germany as it is not from EU.
    US Customer simpley has to pay 50€ over and out.

    That’s why I’m realy irritated, why WC substracts 19% from the products price for international customers. May be I don’t get it, but that’s somehow wrong.

    Where is the point I don’t get? ??

    Thanks!
    kraeMit

    Plugin Author vendidero

    (@vendidero)

    As I’ve explained in my last post: Your prices are treated as including taxes. If you sell to a country for which you don’t have any rates set up, Woo will remove/subtract (base) taxes accordingly. That’s expected behavior. What you are trying to achieve is sell net = gross for third countries. See my last answer for details on how to achieve that.

    Thread Starter kraeMit

    (@kraemit)

    Hm, o.k.

    BTW : What about Zero tax rates? I have set this up for some international countries, but that does not work. Is this indent to work for another use case?

    Excuse me, I have searched for that ‘“gross prices for third countries” option a while, but can’t find it. Where is it?

    • This reply was modified 1 month, 4 weeks ago by kraeMit.
    Plugin Author vendidero

    (@vendidero)

    Do you mean the separate zero tax class? This tax class is for certain products that do (for all customers) not include taxes. If you do not want to tax certain countries just don’t add a tax rate for that specific country – by default, no taxes are calculated.

    Excuse me, I have searched for that ‘“gross prices for third countries” option a while, but can’t find it. Where is it?

    You’ll need to install the OSS plugin for that purpose and check WooCommerce > Settings > Germanized > One Stop Shop but that specific option is only available in case you are participating in the OSS procedure. Is that the case? You may use the following snippet in your functions.php instead to make sure Woo uses static gross prices: https://gist.github.com/dennisnissle/b68912a629f830af63e3b79cdc537cfd

    Best,
    Dennis

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