Default VAT Group multiple countries

John Broers

Posted on 29/01/2020 13:52:18

In our shop we have the product prices including VAT in our database. We have multiple countries with different standard VAT rates. In the settings we checked 'Prices in the database include VAT' and 'Use VAT group rate as system VAT' and added a VAT group with the correct VAT rate per country and set the type to 'Default'.

We were hoping that all current groups and products would use this VAT group but it looks like they don't. The VAT only gets correctly calculated when we assign the VAT group to a product. Is there an option to force all current groups and products to use this VAT group? And also that newly created groups (and products) have this VAT Group set as default?

Or maybe someone knows a different approach to fix this problem?

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Morten Bengtson

Posted on 29/01/2020 14:49:06

This post has been marked as an answer

Hi John,

I would recommend that you avoid enabling "Prices in the database include VAT" and "Use VAT group rate as system VAT" when you have a setup with multiple countries.

You can simplify this a lot by importing the prices without VAT instead.

/Morten

Votes for this answer: 1

Nicolai Pedersen

Posted on 29/01/2020 14:57:19

This post has been marked as an answer

Hi John

Since a product can be in 2 different groups and therefore also in 2 different shops, being sold on 2 different websites, with 2 different billing countries, the product NEEDS the information on which VAT group it belongs in order to take out VAT from the price in DB. If all products in the database have the same VAT percent, you can use the system VAT field under settings - and remove the VAT group option.

That being said, you will probably never be happy with this setup. If you sell products in different countries with different VAT, you will have to get the products into the database without vat - it might take some time today, but it will be saved in the end!

Another solution is to create 2 custom fields on the product as a double that holds the VAT percent in one field and the price with VAT the other field. The run a SQL against the table that will update the sales price (EcomProductPrice) to price minus vat percent - you can create a scheduled task that runs once a day or after every import (if used) etc.

We always strongly recommend that you do not have prices in the database with VAT - see docs on how and why: https://doc.dynamicweb.com/documentation-9/ecommerce/payment-shipping/vat-taxes

Hope this helps!

BR Nicolai

Votes for this answer: 1

John Broers

Posted on 04/02/2020 16:05:07

Hi Morten, Nicolai,

Thank you for your reply and advice.

We decided to run a new import with the prices without VAT.

Jesse Bakker

Posted on 07/02/2020 10:01:27

Hi Guys,

We are still struggling with the prices and vats. On your advice we changed all prices in database to Ex Vat.

Now we have some issue with rounding. Where the total order price is 1 cent off. See screenshots for an example.

Is there some option we are missing or is there some structure we can use to fix this?

Nicolai Pedersen

Posted on 07/02/2020 16:16:27

Hi Jesse

Yes, that is a known situation that a 0,01 difference can occor. It is technically correct - see dump 1 for the reasson when calculated in Excel.

The issue is that we have some few currencies that supports more than 2 decimal places which is the reason we do not calculate with only 2. When collection of prices are summed and rounded individually, this will happen in some rare cases.

We are looking at a change that will change the price being shown in totals in these scenarios. It will round the amounts being summed using the NumberFormat.CurrencyDecimalDigits used by the currency if enforced.

I have an example attached that will behave like that. We need some testing on this before we can release it.

BR Nicolai

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Default VAT Group multiple countries

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