WooCommerce VAT / Tax calculations incorrect

  • Resolved andrew

    (@urchindesign)


    3 years, 3 months ago

    Can’t believe this is still going on. It seems like your tax calculations do not follow best accounting practice. There are tons of threads across the internet about this. No matter how we add the tax or what settings we choose the tax is not calculated correctly.

    If we create the same order in different accounting software they all have the correct vat amounts. Just Woo that can’t get the correct amount.

    We’ve tried every possible setting and none end up with the correct amount. On large orders and multiple orders over time this amounts to serious amounts of VAT being out.

    As it stands at the moment if you are trying to run a business that requires tax and you need to have accurate VAT for purposes of paying the taxes you can’t.

    Any idea if or when you will calculate the VAT / Tax according to international best practice?

Viewing 4 replies - 1 through 4 (of 4 total)

  • How are the calculations wrong?

    We have VAT enabled on our store and are having no issues.

    Thread Starter andrew

    (@urchindesign)

    Basically the way the Woo is working it out and doing its rounding the actual VAT amounts are always out. The more items that are ordered and the bigger the orders with multiple items, the bigger the discrepancies.

    According to our accountant and all the big South African retailers we supply the VAT is not correct.

    I’ll get an example from our accountant but if you search on Google you will find that this has been an ongoing issue for some time.

    Hello @urchindesign,

    Setting up taxes can be a complex task, many users get frustrated when it doesn’t work the way they expect it to. Let’s see what we can do to help you set up the taxes properly.

    First, let me start by saying that I can only help with setting up tax rates in the WooCommerce settings and how the platform handles taxes/VAT/GST based on these settings, but not when or what to charge.

    We’re not tax professionals so our advice is how to use our software. For specific advice when it comes to what or when to charge tax/VAT/GST etc, we recommend consulting with a tax professional or an accountant on what may be your best options.

    Each business is unique, and there’s no way we can cover every possibility.

    You can learn more about setting up taxes here:

    https://docs.woocommerce.com/document/setting-up-taxes-in-woocommerce/

    —

    Could you please share a copy of your site’s System Status? You can find it via WooCommerce > Status. Select “Get system report” and then “Copy for support”.? Once you’ve done that, paste it here in your response. This will help us better understand how your site is set up. Thank you!

    Can you also let us know, how exactly you want your taxes to be set up? Are you using any other accounting software to calculate the taxes in your WooCommerce store?

    Sharing screenshots of your current tax settings will help us identify any problems there might be there. I recommend https://snipboard.io for sharing screenshots – please follow the instructions on the page, then paste the URL in your reply.

    Lastly, can you please link to the information you found on Google that this has been going on for some time? It will help us understand what the exact issue is, and provide you with options on how to get set up properly. Thank you!

    Kind regards,

    Hi @urchindesign

    We’ve not heard back from you in a while, so I’m marking this thread as resolved. If you have further questions, please feel free to open a new topic.

Viewing 4 replies - 1 through 4 (of 4 total)
  • The topic ‘WooCommerce VAT / Tax calculations incorrect’ is closed to new replies.