VAT over shipping costs depending on VAT rate of products

Question

In The Netherlands we're blessed with the inconvenient situation that VAT has to be calculated over shipping costs and the VAT rate to be used is the highest rate of any of the products in the shipment. Currently we have 3 VAT rates: 0%, 6% and 21%. Examples: 1)a customer buys 3 products that haven all 3 a VAT rate of 6%: over the shipping costs also 6% tax must be charged 2) a customer buys 3 products with 6% VAT and 1 product with 21% VAT: over the shipping costs now 21% tax must be charged.

I was thinking on telling Magento that all shippings costs entered in the admin are without VAT and then check all products in the cart at checkout and see what VAT rates they have. Pick the highest product rate and charge that for the sending costs.

But where do I do that so that it's correct for the sending costs and VAT estimate, the final order overview and the PDF invoice ? Or should I change it at multiple places?

Any help is appreciated...

P.S. Most dutch webshop solve it by simply always charging 21% over shipping costs. That's of course allowed and the tax office won't mind.....but since we mostly have small orders (under 20 euro) we would prefer to not charge more then necessary.

Answer 1

FireGento_MageSetup can do this (and a lot more, so not sure whether this brings new Problems for you)

Most dutch webshop solve it by simply always charging 21% over shipping costs. That's of course allowed and the tax office won't mind

Someone in germany told me, this is ok for the tax office, but it is fraud for the customer, because they pay too much.