Shipping > Carriers > Tax - is the rate i select going to apply retroactively or is it ADDED later?

[poshshop]

I hope this isn't a silly question but it's really bothering me and l can't find an answer anywhere.

When l am setting up a shipping carrier, l need to select which tax to apply in the "Shipping locatins and costs" tab.

Example, l have UK reduced VAT @ 5% and UK standard VAT @ 20%.

So,  when l input the courer price for different parcel weights, am l quoting prices that ALREADY include the tax rate l've just previously selected for that carrier? So that when the customer is invoices they are told they have paid (COURIER COST pre-Tax) plus (Tax cost @ VAT percentage rate) to give (COURIER QUOTE that l have input manually when setting up carrier)?

 

OR is the tax rate l select, applied AFTER the carrier price quotes l manually input?

 

Example:

I select VAT tax rate of 20% for carrier

I quote £6 for 0.5kg weight

Does customer invoice state for the shipping: £5 + £1 VAT tax @ 20%

OR does it state: £6 + £1.20 VAT tax @ 20% ?

 

 

Edited December 7, 2019 by poshshop (see edit history)