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VAT calculated on original price not discount price.


garyjj127

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Version 1.5.6.2

 

Is there any way to calculate the VAT element of a product after a discount has been applied?

We had an order from Switzerland this morning, and have the following problem:

 

Original final retail price inc vat was £59.95

Therefore, VAT on the product is £9.99

 

We have reduced the item, by applying a discount of £19.96, resulting in a retail price inc VAT of £39.99

Therefore VAT on this item SHOULD BE £6.67, but the tax is still calculated on the full retail price.

 

We only noticed this on the order from Switzerland, as they are exempt from paying VAT, and therefore PS deducted the full VAT of £9.99 from the DISCOUNTED price of £39.99, thereby giving the customer an extra discount of £3.32!!!

 

The VAT is being calculated on the full pre-discount retail price, rather than on the final retail price. How do I get the VAT calculated on the final retail price?

 

nb. What makes this even more ridiculous is if I have a product that was £70 and has been reduced to £10, and I view my site based on being in a non VAT paying country, the item has an on site price of £0, because of the VAT deduction!

Edited by garyjj127 (see edit history)
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