According to German taxation law, the tax rate on the shipping tax should be calculated base on the tax rates of the products ordered.
If there are some products with 19% and some with 7%, the shipping tax should be calculated proportional the part of 19% products and 7% products.
Is this supported by Magento or are there any (Open Source) modules that cover this?
- one book, 10 EUR, plus 7% VAT
- one DVD, 10 EUR, plus 19% VAT
- shipping cost: 5 EUR plus VAT
Now to 50% of the order value 7% VAT apply, to the order 50% 19%.
- Tax for the shipping cost is 0,65 EUR
- 2,50 EUR * 19% = 0,475 EUR
- 2,50 EUR * 7% = 0,175 EUR
Lovely, isn't it?
Warning: I still have sure if the proportion must be calculated according to the product prices excl. or incl. VAT.
PS: Another legal option would be to use the highest VAT rate in the full order, i.e. 19% for the shipping costs, which is of course less complicated to calculate but causes unnecessary taxation.