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| | | Author: | Teup  | | Posted: | Jan 8, 2022 05:07 | | Subject: | Bricklink calculates VAT incorrectly | | Viewed: | 193 times | | Topic: | Selling | |
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| Inspired by an incorrect comment yesterday in the EU distance selling call that
shipping costs don't include VAT, I went to check a VAT invoice of my orders
to the UK and yep, I noticed that VAT was only calculated over the item total
and not the shipping costs. This is not right, VAT needs to be calculated over
the grand total. I wonder, could this be the reason for some situations where
people need to pay VAT twice? I don't know what invoices (if any) get attached
when importing into the EU, but if the ex.VAT price of the grand total does not
match with the VAT percentage charged, it is logical that authorities will not
accept it.
I don't know precisely for which countries shipping costs have VAT (I checked
UK, seems yes), but even if there would be a country that doesn't, it would
still be incorrect because S&H charges include handling which is always subject
to VAT. (And sometimes the postage costs are visible on the label, and if that
doesn't match the shipping cost in the invoice, for which no VAT was charged,
that's going to raise some eyebrows)
Or is this just in my store, because I haven't switched on VAT on shipping
costs? (I don't use Bricklink to calculate my VAT, I just entered the correct
shipping prices the way they should be, so I didn't need this feature)
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| | | | | Author: | yorbrick | | Posted: | Jan 8, 2022 05:32 | | Subject: | Re: Bricklink calculates VAT incorrectly | | Viewed: | 61 times | | Topic: | Selling | |
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| In Selling, Teup writes:
| | Inspired by an incorrect comment yesterday in the EU distance selling call that
shipping costs don't include VAT, I went to check a VAT invoice of my orders
to the UK and yep, I noticed that VAT was only calculated over the item total
and not the shipping costs. This is not right, VAT needs to be calculated over
the grand total. I wonder, could this be the reason for some situations where
people need to pay VAT twice? I don't know what invoices (if any) get attached
when importing into the EU, but if the ex.VAT price of the grand total does not
match with the VAT percentage charged, it is logical that authorities will not
accept it.
I don't know precisely for which countries shipping costs have VAT (I checked
UK, seems yes), but even if there would be a country that doesn't, it would
still be incorrect because S&H charges include handling which is always subject
to VAT. (And sometimes the postage costs are visible on the label, and if that
doesn't match the shipping cost in the invoice, for which no VAT was charged,
that's going to raise some eyebrows)
Or is this just in my store, because I haven't switched on VAT on shipping
costs? (I don't use Bricklink to calculate my VAT, I just entered the correct
shipping prices the way they should be, so I didn't need this feature)
|
Yes, that could well be an issue. In the UK, VAT doesn't apply when a person
posts things (using most Royal Mail services) but if a business uses that service
it is seen as a business expense and so VAT is chargeable. So it makes sense
when VAT is due on imported items, then it should apply on the international
postage costs. Otherwise people would charge little for goods and a lot for postage
and handling.
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| | | | | Author: | gvbricks | | Posted: | Jan 8, 2022 05:35 | | Subject: | Re: Bricklink calculates VAT incorrectly | | Viewed: | 49 times | | Topic: | Selling | |
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| On our UK VAT invoices provided by BrickLink UK VAT is always calculated on the
total net price (items + shipping + additional costs). Unlike you we have VAT
enabled on everything in the store settings.
In Selling, Teup writes:
| | Or is this just in my store, because I haven't switched on VAT on shipping
costs? (I don't use Bricklink to calculate my VAT, I just entered the correct
shipping prices the way they should be, so I didn't need this feature)
|
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| | | | | | | Author: | Teup | | Posted: | Jan 8, 2022 05:40 | | Subject: | Re: Bricklink calculates VAT incorrectly | | Viewed: | 48 times | | Topic: | Selling | |
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| In Selling, gvbricks writes:
| | On our UK VAT invoices provided by BrickLink UK VAT is always calculated on the
total net price (items + shipping + additional costs). Unlike you we have VAT
enabled on everything in the store settings.
In Selling, Teup writes:
| | Or is this just in my store, because I haven't switched on VAT on shipping
costs? (I don't use Bricklink to calculate my VAT, I just entered the correct
shipping prices the way they should be, so I didn't need this feature)
|
|
Ok, then yes, it's this feature that is causing it. It was a useful practical
option for me because it automatically increases outside EU shipping rates without
me having to enter a separate table, but if it results in incorrect VAT invoices
it should be ignored or removed. The seller shouldn't be choosing whether
or not to include VAT on shipping, the importing country should (and then still
there is always VAT on the handling component).
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| | | | | | | | | Author: | Stellar | | Posted: | Jan 8, 2022 05:44 | | Subject: | Re: Bricklink calculates VAT incorrectly | | Viewed: | 47 times | | Topic: | Selling | |
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| In Selling, Teup writes:
| | In Selling, gvbricks writes:
| | On our UK VAT invoices provided by BrickLink UK VAT is always calculated on the
total net price (items + shipping + additional costs). Unlike you we have VAT
enabled on everything in the store settings.
|
|
I can confirm the same, my UK invoices have 20% correctly calculated on the whole
payment amount.
| | | | In Selling, Teup writes:
| | Or is this just in my store, because I haven't switched on VAT on shipping
costs? (I don't use Bricklink to calculate my VAT, I just entered the correct
shipping prices the way they should be, so I didn't need this feature)
|
|
Ok, then yes, it's this feature that is causing it. It was a useful practical
option for me because it automatically increases outside EU shipping rates without
me having to enter a separate table, but if it results in incorrect VAT invoices
it should be ignored or removed. The seller shouldn't be choosing whether
or not to include VAT on shipping, the importing country should (and then still
there is always VAT on the handling component).
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| | | | | | | | | Author: | TBS | | Posted: | Jan 8, 2022 07:54 | | Subject: | Re: Bricklink calculates VAT incorrectly | | Viewed: | 37 times | | Topic: | Selling | |
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| | | | | In Selling, Teup writes:
| | Or is this just in my store, because I haven't switched on VAT on shipping
costs?
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|
That´s exactly why it didn´t work for you, or you got the wrong or different
VAT-Amount.
Note. If you switch it on, you must enter the NET Shippingprice.
| | | | | | (I don't use Bricklink to calculate my VAT, I just entered the correct
shipping prices the way they should be, so I didn't need this feature)
|
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|
No wonder why, but check if illegal in your Country.
| | Ok, then yes, it's this feature that is causing it. It was a useful practical
option for me because it automatically increases outside EU shipping rates without
me having to enter a separate table, but if it results in incorrect VAT invoices
it should be ignored or removed. The seller shouldn't be choosing whether
or not to include VAT on shipping, the importing country should (and then still
there is always VAT on the handling component).
|
The Seller should be able to choose that feature or not. It is maybe important
from the web-coding side of view.
In Germany the law is - when the product is subject to VAT, then all forthcoming
services onto the product are subject to VAT as well. (Shipping, Handling, Packingcosts
etc.)
But there might be laws in Europe or Worldwide, where its exactly the opposite.
That´s why the feature is needed in its current form.
The only thing necessary is a better education about the laws a seller has to
handle.
Otherwise your screwed in accounting or in a confrontation with your Financial
Tax Departments (IRS or similar).
So look into it, how it works correctly from your end.
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| | | | | | | | | | | Author: | yorbrick | | Posted: | Jan 8, 2022 10:41 | | Subject: | Re: Bricklink calculates VAT incorrectly | | Viewed: | 42 times | | Topic: | Selling | |
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| In Selling, TBS writes:
| | | | | | In Selling, Teup writes:
| | Or is this just in my store, because I haven't switched on VAT on shipping
costs?
|
|
|
That´s exactly why it didn´t work for you, or you got the wrong or different
VAT-Amount.
Note. If you switch it on, you must enter the NET Shippingprice.
| | | | | | (I don't use Bricklink to calculate my VAT, I just entered the correct
shipping prices the way they should be, so I didn't need this feature)
|
|
|
No wonder why, but check if illegal in your Country.
| | Ok, then yes, it's this feature that is causing it. It was a useful practical
option for me because it automatically increases outside EU shipping rates without
me having to enter a separate table, but if it results in incorrect VAT invoices
it should be ignored or removed. The seller shouldn't be choosing whether
or not to include VAT on shipping, the importing country should (and then still
there is always VAT on the handling component).
|
The Seller should be able to choose that feature or not. It is maybe important
from the web-coding side of view.
In Germany the law is - when the product is subject to VAT, then all forthcoming
services onto the product are subject to VAT as well. (Shipping, Handling, Packingcosts
etc.)
But there might be laws in Europe or Worldwide, where its exactly the opposite.
That´s why the feature is needed in its current form.
The only thing necessary is a better education about the laws a seller has to
handle.
Otherwise your screwed in accounting or in a confrontation with your Financial
Tax Departments (IRS or similar).
So look into it, how it works correctly from your end.
|
It is not whether the seller's country allows it, it is about the receiving
country's law in this case. Sellers shouldn't be allowed to opt out of
charging VAT on s+h for any country where it should be charged no matter what
settings they select. It is bad for the buyer and they should rightfully complain,
expect a refund of any extra charge plus any associated fees and leave negative
feedback if a seller doesn't charge VAT on the full order (whether by mistake
or purposely to make their overall price look lower), then the package gets
caught.
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| | | | | Author: | tjb01527 | | Posted: | Jan 8, 2022 06:07 | | Subject: | Re: Bricklink calculates VAT incorrectly | | Viewed: | 61 times | | Topic: | Selling | |
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| Perhaps it's just me, but this is this a begging letter to pay more taxes.
I do not agree that you should pay VAT on shipping. Since the UK has left the
EU, it has become very expensive to buy from the EU due to the addition of VAT.
I know from sales that buyers from the EU feel the same judging from a drop in
sales. Now we have someone complaining that we are not paying enough VAT. One
way to help kill sales. Thanks!!
In Selling, Teup writes:
| | Inspired by an incorrect comment yesterday in the EU distance selling call that
shipping costs don't include VAT, I went to check a VAT invoice of my orders
to the UK and yep, I noticed that VAT was only calculated over the item total
and not the shipping costs. This is not right, VAT needs to be calculated over
the grand total. I wonder, could this be the reason for some situations where
people need to pay VAT twice? I don't know what invoices (if any) get attached
when importing into the EU, but if the ex.VAT price of the grand total does not
match with the VAT percentage charged, it is logical that authorities will not
accept it.
I don't know precisely for which countries shipping costs have VAT (I checked
UK, seems yes), but even if there would be a country that doesn't, it would
still be incorrect because S&H charges include handling which is always subject
to VAT. (And sometimes the postage costs are visible on the label, and if that
doesn't match the shipping cost in the invoice, for which no VAT was charged,
that's going to raise some eyebrows)
Or is this just in my store, because I haven't switched on VAT on shipping
costs? (I don't use Bricklink to calculate my VAT, I just entered the correct
shipping prices the way they should be, so I didn't need this feature)
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| | | | | | | Author: | Teup | | Posted: | Jan 8, 2022 06:29 | | Subject: | Re: Bricklink calculates VAT incorrectly | | Viewed: | 48 times | | Topic: | Selling | |
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| This is besides the point.. I am not a politician  There is VAT on shipping,
it's a reality whether you agree to it or not. This is just about whether
or not Bricklink accurately reflects reality. It's just a shot at figuring
out what causes some buyers to have to pay VAT twice on import - so it's
actually precisely about not paying too much.
In Selling, tjb01527 writes:
| | Perhaps it's just me, but this is this a begging letter to pay more taxes.
I do not agree that you should pay VAT on shipping. Since the UK has left the
EU, it has become very expensive to buy from the EU due to the addition of VAT.
I know from sales that buyers from the EU feel the same judging from a drop in
sales. Now we have someone complaining that we are not paying enough VAT. One
way to help kill sales. Thanks!!
In Selling, Teup writes:
| | Inspired by an incorrect comment yesterday in the EU distance selling call that
shipping costs don't include VAT, I went to check a VAT invoice of my orders
to the UK and yep, I noticed that VAT was only calculated over the item total
and not the shipping costs. This is not right, VAT needs to be calculated over
the grand total. I wonder, could this be the reason for some situations where
people need to pay VAT twice? I don't know what invoices (if any) get attached
when importing into the EU, but if the ex.VAT price of the grand total does not
match with the VAT percentage charged, it is logical that authorities will not
accept it.
I don't know precisely for which countries shipping costs have VAT (I checked
UK, seems yes), but even if there would be a country that doesn't, it would
still be incorrect because S&H charges include handling which is always subject
to VAT. (And sometimes the postage costs are visible on the label, and if that
doesn't match the shipping cost in the invoice, for which no VAT was charged,
that's going to raise some eyebrows)
Or is this just in my store, because I haven't switched on VAT on shipping
costs? (I don't use Bricklink to calculate my VAT, I just entered the correct
shipping prices the way they should be, so I didn't need this feature)
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| | | | | | | Author: | yorbrick | | Posted: | Jan 8, 2022 06:41 | | Subject: | Re: Bricklink calculates VAT incorrectly | | Viewed: | 45 times | | Topic: | Selling | |
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| In Selling, tjb01527 writes:
| | Perhaps it's just me, but this is this a begging letter to pay more taxes.
I do not agree that you should pay VAT on shipping. Since the UK has left the
EU, it has become very expensive to buy from the EU due to the addition of VAT.
I know from sales that buyers from the EU feel the same judging from a drop in
sales. Now we have someone complaining that we are not paying enough VAT. One
way to help kill sales. Thanks!!
|
I didn't read it that way. VAT should be collected on shipping when importing.
It's the law, not a choice. If BL store settings are allowing orders to go
through without properly collecting the full VAT it is right for him to point
this out, as otherwise the buyer is caught with the problem of thinking they
have paid the correct VAT when in reality they haven't. And then they get
the issue of the extra VAT to pay and the Royal Mail processing costs, which
are likely to be way above the VAT difference that is still due.
| |
In Selling, Teup writes:
| | Inspired by an incorrect comment yesterday in the EU distance selling call that
shipping costs don't include VAT, I went to check a VAT invoice of my orders
to the UK and yep, I noticed that VAT was only calculated over the item total
and not the shipping costs. This is not right, VAT needs to be calculated over
the grand total. I wonder, could this be the reason for some situations where
people need to pay VAT twice? I don't know what invoices (if any) get attached
when importing into the EU, but if the ex.VAT price of the grand total does not
match with the VAT percentage charged, it is logical that authorities will not
accept it.
I don't know precisely for which countries shipping costs have VAT (I checked
UK, seems yes), but even if there would be a country that doesn't, it would
still be incorrect because S&H charges include handling which is always subject
to VAT. (And sometimes the postage costs are visible on the label, and if that
doesn't match the shipping cost in the invoice, for which no VAT was charged,
that's going to raise some eyebrows)
Or is this just in my store, because I haven't switched on VAT on shipping
costs? (I don't use Bricklink to calculate my VAT, I just entered the correct
shipping prices the way they should be, so I didn't need this feature)
|
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| | | | | | | | | Author: | tjb01527 | | Posted: | Jan 8, 2022 07:51 | | Subject: | Re: Bricklink calculates VAT incorrectly | | Viewed: | 40 times | | Topic: | Selling | |
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| I did read it that way. Perhaps an email to his government rep would be more
helpful rather than moaning about BL. It is totally illogical to me as to why
postage should be taxed with VAT. All it does is hurt the small seller. Let’s
face it, whilst taxes are the law and needed, there is only so much you can afford
before it breaks the camels back. It just seems that governments are getting
too greedy. When I buy on BL, I ask the seller to put the VAT invoice on the
package. Maybe I have been lucky, but I have never had any problem. I do the
same for my buyers. On EBay, I use their IOSS and again have had no problems
In Selling, yorbrick writes:
| | In Selling, tjb01527 writes:
| | Perhaps it's just me, but this is this a begging letter to pay more taxes.
I do not agree that you should pay VAT on shipping. Since the UK has left the
EU, it has become very expensive to buy from the EU due to the addition of VAT.
I know from sales that buyers from the EU feel the same judging from a drop in
sales. Now we have someone complaining that we are not paying enough VAT. One
way to help kill sales. Thanks!!
|
I didn't read it that way. VAT should be collected on shipping when importing.
It's the law, not a choice. If BL store settings are allowing orders to go
through without properly collecting the full VAT it is right for him to point
this out, as otherwise the buyer is caught with the problem of thinking they
have paid the correct VAT when in reality they haven't. And then they get
the issue of the extra VAT to pay and the Royal Mail processing costs, which
are likely to be way above the VAT difference that is still due.
| |
In Selling, Teup writes:
| | Inspired by an incorrect comment yesterday in the EU distance selling call that
shipping costs don't include VAT, I went to check a VAT invoice of my orders
to the UK and yep, I noticed that VAT was only calculated over the item total
and not the shipping costs. This is not right, VAT needs to be calculated over
the grand total. I wonder, could this be the reason for some situations where
people need to pay VAT twice? I don't know what invoices (if any) get attached
when importing into the EU, but if the ex.VAT price of the grand total does not
match with the VAT percentage charged, it is logical that authorities will not
accept it.
I don't know precisely for which countries shipping costs have VAT (I checked
UK, seems yes), but even if there would be a country that doesn't, it would
still be incorrect because S&H charges include handling which is always subject
to VAT. (And sometimes the postage costs are visible on the label, and if that
doesn't match the shipping cost in the invoice, for which no VAT was charged,
that's going to raise some eyebrows)
Or is this just in my store, because I haven't switched on VAT on shipping
costs? (I don't use Bricklink to calculate my VAT, I just entered the correct
shipping prices the way they should be, so I didn't need this feature)
|
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| | | | | | | | | | | Author: | Rob_and_Shelagh | | Posted: | Jan 8, 2022 08:30 | | Subject: | Re: Bricklink calculates VAT incorrectly | | Viewed: | 50 times | | Topic: | Selling | |
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| In Selling, tjb01527 writes:
| | I did read it that way. Perhaps an email to his government rep would be more
helpful rather than moaning about BL. It is totally illogical to me as to why
postage should be taxed with VAT. All it does is hurt the small seller. Let’s
face it, whilst taxes are the law and needed, there is only so much you can afford
before it breaks the camels back. It just seems that governments are getting
too greedy. When I buy on BL, I ask the seller to put the VAT invoice on the
package. Maybe I have been lucky, but I have never had any problem. I do the
same for my buyers. On EBay, I use their IOSS and again have had no problems
|
For what it's worth I don't believe Governments (in general) are thinking
about little guys like all of us when making tax law, they are just trying to
balance the books of their countries so they can try to provide some of the services
their citizens demand. Also I think they have an obligation to support domestic
tax paying businesses and not allow tax loopholes for people to import goods
via the back door from non domestic tax paying overseas businesses. I agree with
the OP that BL's job is to operate the platform so that all countries tax
laws are complied with and my observation is that they are making a much stronger
effort to do that than the previous regime. If we don't like our tax systems
that is for us to vote on or lobby our governments I guess. BL has my full support
on what they are doing in this respect.
Just my 2p +VAT, no political opinion intended.
Robert
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| | | | | | | | | | | Author: | Teup | | Posted: | Jan 8, 2022 09:17 | | Subject: | Re: Bricklink calculates VAT incorrectly | | Viewed: | 33 times | | Topic: | Selling | |
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| You have completely misunderstood my post. There is a problem with people having
to pay double VAT. I have identified a mistake in the way Bricklink makes invoices.
The numbers are incorrect, in plain sight for the customs or other authorities
when they look at the package.
The only illogical thing here is arguing to keep the mistake in the invoice,
because you would like there to be no VAT in the shipping costs. VAT is paid
on shipping whether you want to or not, it has always been that way, nothing
changed. And most sellers have made the setting to enable VAT on shipping costs
already, so for their invoices nothing changes if Bricklink corrects the mistake.
Btw, it's your goverment in this case But your government's policy
makes sense, otherwise there's a loophole where you can evade tax easily
by branding it 'shipping costs'.
In Selling, tjb01527 writes:
| | I did read it that way. Perhaps an email to his government rep would be more
helpful rather than moaning about BL. It is totally illogical to me as to why
postage should be taxed with VAT. All it does is hurt the small seller. Let’s
face it, whilst taxes are the law and needed, there is only so much you can afford
before it breaks the camels back. It just seems that governments are getting
too greedy. When I buy on BL, I ask the seller to put the VAT invoice on the
package. Maybe I have been lucky, but I have never had any problem. I do the
same for my buyers. On EBay, I use their IOSS and again have had no problems
In Selling, yorbrick writes:
| | In Selling, tjb01527 writes:
| | Perhaps it's just me, but this is this a begging letter to pay more taxes.
I do not agree that you should pay VAT on shipping. Since the UK has left the
EU, it has become very expensive to buy from the EU due to the addition of VAT.
I know from sales that buyers from the EU feel the same judging from a drop in
sales. Now we have someone complaining that we are not paying enough VAT. One
way to help kill sales. Thanks!!
|
I didn't read it that way. VAT should be collected on shipping when importing.
It's the law, not a choice. If BL store settings are allowing orders to go
through without properly collecting the full VAT it is right for him to point
this out, as otherwise the buyer is caught with the problem of thinking they
have paid the correct VAT when in reality they haven't. And then they get
the issue of the extra VAT to pay and the Royal Mail processing costs, which
are likely to be way above the VAT difference that is still due.
| |
In Selling, Teup writes:
| | Inspired by an incorrect comment yesterday in the EU distance selling call that
shipping costs don't include VAT, I went to check a VAT invoice of my orders
to the UK and yep, I noticed that VAT was only calculated over the item total
and not the shipping costs. This is not right, VAT needs to be calculated over
the grand total. I wonder, could this be the reason for some situations where
people need to pay VAT twice? I don't know what invoices (if any) get attached
when importing into the EU, but if the ex.VAT price of the grand total does not
match with the VAT percentage charged, it is logical that authorities will not
accept it.
I don't know precisely for which countries shipping costs have VAT (I checked
UK, seems yes), but even if there would be a country that doesn't, it would
still be incorrect because S&H charges include handling which is always subject
to VAT. (And sometimes the postage costs are visible on the label, and if that
doesn't match the shipping cost in the invoice, for which no VAT was charged,
that's going to raise some eyebrows)
Or is this just in my store, because I haven't switched on VAT on shipping
costs? (I don't use Bricklink to calculate my VAT, I just entered the correct
shipping prices the way they should be, so I didn't need this feature)
|
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| | | | | | | | | | | | | Author: | tjb01527 | | Posted: | Jan 8, 2022 09:37 | | Subject: | Re: Bricklink calculates VAT incorrectly | | Viewed: | 28 times | | Topic: | Selling | |
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| Smashing.
In Selling, Teup writes:
| | You have completely misunderstood my post. There is a problem with people having
to pay double VAT. I have identified a mistake in the way Bricklink makes invoices.
The numbers are incorrect, in plain sight for the customs or other authorities
when they look at the package.
The only illogical thing here is arguing to keep the mistake in the invoice,
because you would like there to be no VAT in the shipping costs. VAT is paid
on shipping whether you want to or not, it has always been that way, nothing
changed. And most sellers have made the setting to enable VAT on shipping costs
already, so for their invoices nothing changes if Bricklink corrects the mistake.
Btw, it's your goverment in this case But your government's policy
makes sense, otherwise there's a loophole where you can evade tax easily
by branding it 'shipping costs'.
In Selling, tjb01527 writes:
| | I did read it that way. Perhaps an email to his government rep would be more
helpful rather than moaning about BL. It is totally illogical to me as to why
postage should be taxed with VAT. All it does is hurt the small seller. Let’s
face it, whilst taxes are the law and needed, there is only so much you can afford
before it breaks the camels back. It just seems that governments are getting
too greedy. When I buy on BL, I ask the seller to put the VAT invoice on the
package. Maybe I have been lucky, but I have never had any problem. I do the
same for my buyers. On EBay, I use their IOSS and again have had no problems
In Selling, yorbrick writes:
| | In Selling, tjb01527 writes:
| | Perhaps it's just me, but this is this a begging letter to pay more taxes.
I do not agree that you should pay VAT on shipping. Since the UK has left the
EU, it has become very expensive to buy from the EU due to the addition of VAT.
I know from sales that buyers from the EU feel the same judging from a drop in
sales. Now we have someone complaining that we are not paying enough VAT. One
way to help kill sales. Thanks!!
|
I didn't read it that way. VAT should be collected on shipping when importing.
It's the law, not a choice. If BL store settings are allowing orders to go
through without properly collecting the full VAT it is right for him to point
this out, as otherwise the buyer is caught with the problem of thinking they
have paid the correct VAT when in reality they haven't. And then they get
the issue of the extra VAT to pay and the Royal Mail processing costs, which
are likely to be way above the VAT difference that is still due.
| |
In Selling, Teup writes:
| | Inspired by an incorrect comment yesterday in the EU distance selling call that
shipping costs don't include VAT, I went to check a VAT invoice of my orders
to the UK and yep, I noticed that VAT was only calculated over the item total
and not the shipping costs. This is not right, VAT needs to be calculated over
the grand total. I wonder, could this be the reason for some situations where
people need to pay VAT twice? I don't know what invoices (if any) get attached
when importing into the EU, but if the ex.VAT price of the grand total does not
match with the VAT percentage charged, it is logical that authorities will not
accept it.
I don't know precisely for which countries shipping costs have VAT (I checked
UK, seems yes), but even if there would be a country that doesn't, it would
still be incorrect because S&H charges include handling which is always subject
to VAT. (And sometimes the postage costs are visible on the label, and if that
doesn't match the shipping cost in the invoice, for which no VAT was charged,
that's going to raise some eyebrows)
Or is this just in my store, because I haven't switched on VAT on shipping
costs? (I don't use Bricklink to calculate my VAT, I just entered the correct
shipping prices the way they should be, so I didn't need this feature)
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| | | | | Author: | leggodtshop | | Posted: | Jan 8, 2022 10:19 | | Subject: | Re: Bricklink calculates VAT incorrectly | | Viewed: | 47 times | | Topic: | Selling | |
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| In Selling, Teup writes:
| | Inspired by an incorrect comment yesterday in the EU distance selling call that
shipping costs don't include VAT, I went to check a VAT invoice of my orders
to the UK and yep, I noticed that VAT was only calculated over the item total
and not the shipping costs. This is not right, VAT needs to be calculated over
the grand total. I wonder, could this be the reason for some situations where
people need to pay VAT twice? I don't know what invoices (if any) get attached
when importing into the EU, but if the ex.VAT price of the grand total does not
match with the VAT percentage charged, it is logical that authorities will not
accept it.
I don't know precisely for which countries shipping costs have VAT (I checked
UK, seems yes), but even if there would be a country that doesn't, it would
still be incorrect because S&H charges include handling which is always subject
to VAT. (And sometimes the postage costs are visible on the label, and if that
doesn't match the shipping cost in the invoice, for which no VAT was charged,
that's going to raise some eyebrows)
Or is this just in my store, because I haven't switched on VAT on shipping
costs? (I don't use Bricklink to calculate my VAT, I just entered the correct
shipping prices the way they should be, so I didn't need this feature)
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In The NL the VAT % charged on shipping, handling, etc. must be the same as the
VAT % charged on the goods shipped. So, if seller must charge 21% VAT on the
goods, s/he also must charge 21% on the shipping. If the seller sells margin
goods (which cannot be charged VAT) there is also no VAT on the shipping.
If there is a mix of VAT % on the goods, then the highest % must be charged on
the shipping.
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| | | | | | | Author: | Teup | | Posted: | Jan 8, 2022 11:03 | | Subject: | Re: Bricklink calculates VAT incorrectly | | Viewed: | 48 times | | Topic: | Selling | |
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| In Selling, patpendlego writes:
| | In Selling, Teup writes:
| | Inspired by an incorrect comment yesterday in the EU distance selling call that
shipping costs don't include VAT, I went to check a VAT invoice of my orders
to the UK and yep, I noticed that VAT was only calculated over the item total
and not the shipping costs. This is not right, VAT needs to be calculated over
the grand total. I wonder, could this be the reason for some situations where
people need to pay VAT twice? I don't know what invoices (if any) get attached
when importing into the EU, but if the ex.VAT price of the grand total does not
match with the VAT percentage charged, it is logical that authorities will not
accept it.
I don't know precisely for which countries shipping costs have VAT (I checked
UK, seems yes), but even if there would be a country that doesn't, it would
still be incorrect because S&H charges include handling which is always subject
to VAT. (And sometimes the postage costs are visible on the label, and if that
doesn't match the shipping cost in the invoice, for which no VAT was charged,
that's going to raise some eyebrows)
Or is this just in my store, because I haven't switched on VAT on shipping
costs? (I don't use Bricklink to calculate my VAT, I just entered the correct
shipping prices the way they should be, so I didn't need this feature)
|
In The NL the VAT % charged on shipping, handling, etc. must be the same as the
VAT % charged on the goods shipped. So, if seller must charge 21% VAT on the
goods, s/he also must charge 21% on the shipping. If the seller sells margin
goods (which cannot be charged VAT) there is also no VAT on the shipping.
If there is a mix of VAT % on the goods, then the highest % must be charged on
the shipping.
|
Yikes, I read on a British site that they calculate VAT on shipping proportionally
to the rates of the products, rather than assuming the highest percentage. Good
luck implementing that too.. this VAT stuff is a neverending head ache for Bricklink
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| | | | | | | | | Author: | leggodtshop | | Posted: | Jan 8, 2022 11:20 | | Subject: | Re: Bricklink calculates VAT incorrectly | | Viewed: | 56 times | | Topic: | Selling | |
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| In Selling, Teup writes:
| | In Selling, patpendlego writes:
| | In Selling, Teup writes:
| | Inspired by an incorrect comment yesterday in the EU distance selling call that
shipping costs don't include VAT, I went to check a VAT invoice of my orders
to the UK and yep, I noticed that VAT was only calculated over the item total
and not the shipping costs. This is not right, VAT needs to be calculated over
the grand total. I wonder, could this be the reason for some situations where
people need to pay VAT twice? I don't know what invoices (if any) get attached
when importing into the EU, but if the ex.VAT price of the grand total does not
match with the VAT percentage charged, it is logical that authorities will not
accept it.
I don't know precisely for which countries shipping costs have VAT (I checked
UK, seems yes), but even if there would be a country that doesn't, it would
still be incorrect because S&H charges include handling which is always subject
to VAT. (And sometimes the postage costs are visible on the label, and if that
doesn't match the shipping cost in the invoice, for which no VAT was charged,
that's going to raise some eyebrows)
Or is this just in my store, because I haven't switched on VAT on shipping
costs? (I don't use Bricklink to calculate my VAT, I just entered the correct
shipping prices the way they should be, so I didn't need this feature)
|
In The NL the VAT % charged on shipping, handling, etc. must be the same as the
VAT % charged on the goods shipped. So, if seller must charge 21% VAT on the
goods, s/he also must charge 21% on the shipping. If the seller sells margin
goods (which cannot be charged VAT) there is also no VAT on the shipping.
If there is a mix of VAT % on the goods, then the highest % must be charged on
the shipping.
|
Yikes, I read on a British site that they calculate VAT on shipping proportionally
to the rates of the products, rather than assuming the highest percentage. Good
luck implementing that too.. this VAT stuff is a neverending head ache for Bricklink
|
Yeah, VAT is nightmare and the EU doesn't have the guts to implement one
system for all EU-countries. Although they tend to move slowly into that direction.
BrickLink does not support VAT by far all that is needed. Luckily I sell margin
goods only and do not have to use the BrickLink VAT "feature" at all
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Netherlands, Utrecht
United Kingdom, England
Germany, Nordrhein-Westfalen
Spain, Comunidad Valenciana
