Advanced VAT rules

[hosballz]

Hi everyone,

 

i've got my shop set up, only there are some minor issues.

One of those issues isn't really that minor. I sell 2nd hand stuff on my webshop,

and here in holland 21% VAT needs to be paid on the profit. So if i buy a product for 90 euro's, and i sell it for 100 euro's ex. VAT, the price incl. VAT should be 102,10 instead of 121,00 euro's. I tought of 2 options, but i don't know how to execute them both.

Option one:

I get some sort of plugin that reads the wholesale price and the retail price, subtracts the retail price from the wholesale price, does that number times 1,21 and adds the wholesale price again. (and it should be able to do this in every direction)

Option two:

I disable taxes completely. Then i need something for my reports that automaticaly reads the wholsale price, and the retail price incl VAT. subtracts the wholesale price divides it by 1,21, and adds the wholesale price up. This is value x. Then subtract value x from the start value. That way i also know how much tax i should pay.

 

I'd rather use option one, with some kind of trick that just shows the final price in my store, and on the invoice, but that reports back to me how much tax i should pay.

 

Thanks a lot in advance

[Xavier du Tertre]

Hi hosballz,

 

We're currently working on fixing the issues that you may have encountered with tax rules on PrestaShop. Actually, there's an updated version of PrestaSthop available here: http://www.prestashop.com/forums/topic/350813-tax-and-rounding-fixes-testers-needed/?p=1777830 

 

Not only do we strongly recommend that you upgrade and get a chance to have your store run exactly the way you want to, but we also need users like you to run some tests and report any tax-related bug you come across. 

 

First and foremost, we hope this upgrade makes your life easier on PrestaShop.

[techkoop]

HI

 

If you buy a product for 90 euro you have two possibilities:

1.you have baught the product for 90,- including VAT: your purchase price is 74,38 ex VAT

2.you have baught the product for 90,- excluding VAT,your purchase price is 90,00 ex VAT (you paid 108,90)

If you buy from consumers you have baught including VAT,but you wont get a bill so:

2a: you have baught for 90,- including VAT no bill: your purchase price is 90,- ex VAT

 

When you sell

3. you sell at 100,- including VAT, ex VAT price is 82,64

if you have baught  for 74,38 your profit is 8,26 if you have baught for 90,- you lose money

4. you sell at 100,- excluding VAT, price including VAT is 121,-

your profit is 100-/-74,38=25.62 or if you baught for 90,- your profit is 10,-

 

In my opnion this all has nothing to do with tax rules settings in prestashop.

 

Correct me if i am wrong.

 

Regards,

 

Peter

[Omk]

Sale of 2nd hand goods is a special case, and the practice seems to vary from country to country. Some countries are more liberal in application of VAT regulations than others. In Netherlands it seems that 2nd hand goods that a company has bought from a consumer, who has already paid the VAT, as is shown in his purchase receipt and sells it further, obviously without VAT, as the individual consumer is not VAT registered. 

When the company buys 2nd hand goods from a consumer say for 100 euros, the 100 € price is VAT 0%. When the company sells the material for 120 €, then it depends on the local application of VAT law how it is dealed with by the tax authorities. In Netherlads, if Hozballs is right, VAT is only paid from the margin (from 20€). In Finland VAT is paid for the whole amount (120€), unless the merchant is registered with the tax office in the marginal tax policy register, which is the usual practice for all 2nd hand shops and antquariates.

 

I am not sure whether this all fully correct or not. But surely, the VAT of 2nd hand goods is a special case.