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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?

Example:

I sell

  • 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.

  • Do you know whether we are talking about prices with or without tax, when calculatong the proportion? – Fabian Blechschmidt Mar 12 '13 at 15:48
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    Could you please provide an example? Maybe list out a couple of products and their prices and taxes followed by how you want the shipping calculation to work. – jharrison.au Mar 13 '13 at 1:01
  • @jharrison.au Good point, added an example – Alex Mar 13 '13 at 14:33
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    I think you know, that GermanSetup implements "use the higher tax" and it implements "use the tax from the higher excl. tax proportion". But not yet, what you described – Fabian Blechschmidt Mar 14 '13 at 8:10
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    Is this only for Germany or entire EU? – FlorinelChis Mar 14 '13 at 14:55
3

A couple of classes needed over-riding to base the rate on the proportion of taxable items:

tax/sales_total_quote_tax::collect
tax/ales_total_quote_shipping::_calculateShippingTax

A wrinkle in making a general fix for this is that these classes have changed quite a lot between each version in the range of CE 1.6-1.9.

More detail in my answer originally for the UK market that has similar rules: UK Shipping Tax based on delivered goods

I would point you toward the extension we created to solve this issue which should work in the German case given, but it's not open-source. If you're interested it's linked to from the above answer. It includes options for inclusive/exclusive prices for calculating the proportion.

1

There is a issue open on the FireGento_GermanSetup module (German)

https://github.com/firegento/firegento-germansetup/issues/13

edit:

Draft implementation (self-link): https://github.com/amenk/firegento-germansetup/commit/fe1533b549c85a328d8e32346d7c3678da911506

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