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RE: FN-FORUM: VAT on books
date posted 23rd January 2007 16:56
the calculation looks right to me, but I 'thought' if customer orders a pro=
duct which would normally have VAT levied on it with a billing address wher=
e where VAT doesnt apply its up to the customer to re-coup the VAT charge, =
not down to the vendor to deduct it at the point of sale. I'm not saying t=
hats fact, its just what I'd been lead to understand.
>
>Anyone care to take a look at this, I just want to be 100% sure I've got i=
t
>right in my head. Its to do with calculating vat on "baskets" that=E2=80=
=99s include
>things like books (vat exempt) books with cd roms( partial vat) and cd rom=
s
>(full vat)=20
>
>
>Vat is due if=20
>=09The BILLING country is not vat exempt (billing address may be
>different to delivery address)
>=09The product is not vat exempt
>
>Two kinds of countries
>=09Vat exempt
>=09Vat applicable
>
>THREE kinds of products
>=09Vat exempt
>=09Vat applicable (100%)
>=09Vat applicable (various % but 15% initially)
>
>Finally the delivery charge is always vat applicable if the country is vat
>applicable. So even if the product is vat exempt but the BILLING country =
is
>not, then VAT is still charged on that.
>
>So calculating a basket is done as follows
>
>=09ITEMS=09=09PRICE=09 =09VATRATE=09VATCHARGEABLE
>=09Item 1 =C2=A3100.00 =090 =09=C2=A300.00 =20
>=09Item 2=09=C2=A3100.00 =09100 =09=C2=A317.50=20
>=09Item 3 =09=C2=A3100.00=0915=09=09=C2=A3100 * .15 * .175 =3D =C2=A32.62 =
(ie charge
>17.5% vat on 15% of the price
> =09
>=09Delivery =09=C2=A3100.00=09100=09 =09=C2=A317.50=09
>
>=09Total for Vat applicable destination =20
>
>=09=09=09=C2=A3400.00=09=09=09=C2=A337.62
>
>=09=09=09=09=09=09=09437.62
>=09Total for VAT exempt Destination=09
>=09=09=09=C2=A3400.00=09=09=09=C2=A300.00
>
>=09=09=09=09=09=09=09400.00
>
>
>
>
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