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Author Topic: Is there any way for tax to be included in product price?  (Read 7904 times)

Offline andmoss123

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Is there any way for tax to be included in product price?
« on: October 10, 2023, 05:44:51 PM »
This question has been asked a few times, but I've not found a satisfactory answer, or the responders have not seemed to understand the issue, so here goes.

I have stores with Opencart and Magento, and those platforms assume that product prices include any tax that you may assign to them. (I'm in the UK so our VAT tax rate is 20%)
So, for example, a taxable product with a price of 9.99 is assumed to be 8.32 + Tax when it comes to checkout.

It seems that AbanteCart ADDS the tax to the product price instead, rather than assuming it's included. So a taxable product at 9.99 becomes 9.99 + tax at checkout - 11.99.
I can zero rate my products, but if a B2B customer requires a VAT invoice, then this is problematic.

System > Settings > Checkout > Display Prices With Tax set to no just removes "inc. Taxes" off the product page.

Is there a way of getting AbanteCart to include tax rather than add tax to product prices? I use Magento so am not afraid of a little coding if it's possible.
It seems like a good platform for what I need, but I can't be doing trying to work out all my prices ex-VAT, what with all the rounding up/down issues.

TIA.


Offline abantecart

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Re: Is there any way for tax to be included in product price?
« Reply #1 on: October 11, 2023, 07:13:38 AM »
Hello andmoss123,

There are multiple aspects here and I try to understand what you ask.
I assume you want to enter price with the the tax and automatically recalculate to base price without tax.

Challenge is with multi regional stores, as tax class is connected to the customer's location (delivery address).
If your business is only in one location it will not be a problem, but we need to cover all the scenarios in the platform. 

I think this can be solved with adding 2 extra fields. Price Including tax and tax class/value selection
After entering price with tax, base price will be calculated based on selected tax class/value
This can be done with the JavaScript on tax class/value selection event.
After base price is calculated and form is saved, the storefront will use base price with tax class appropriate to the location.

See similar form image from prestashop

Does this work or you looking for something different?


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Offline Nuno Neff

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Re: Is there any way for tax to be included in product price?
« Reply #2 on: October 11, 2023, 09:47:57 AM »
I'm struggling with the same problem, I'm from Portugal where the tax rate is 23% and I'd like to have my products on the site already with VAT and rounded and I can't, I have to have strange prices on my site and in Prestashop that doesn't happen, I'll give you an example, I want to sell a product at 8€ and I can't, I have to sell it at 8.89€ or 8.91€ in Prestashop I choose the 23% rate for and put 8€ in the final price and it automatically does the rest like you can see in the foto.


Offline llegrand

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Re: Is there any way for tax to be included in product price?
« Reply #3 on: October 11, 2023, 12:13:01 PM »
One thing that must be reconsidered in the include tax in the pricing  is how the product page calculates if the quantity is more than one and displays on the checkout page.  Currently the algorithm used in core code is simply to multiply  the price inc tax by the quantity.   But this introduces a rounding error of .01
And if there is more than one item ,  the difference can even be larger.

A demo product of Skinsheen  is  29.50 ,  tax is 8.5%
Price incl tax  is 32.01
Currently -  the product page and the checkout page  with show 96.03  for a qty or 3
32.01 X 3 = 96.03
But the correct amount is 96.02 for qty
(29.50 x 3) x 1.085 = 96.02
Refer to the screen shot for more information as pricing is displayed to customers at checkout -  it is confusing for customers.   And somewhat problematic when pushing info to an invoicing processor like Moloni for Portuguese clients, as it introduces the .01 difference ,  if the core coding wasn’t re-written for the Moloni push (which is what we had to do for our Moloni extension)

Additionally,  in Nuno's desire to round to even numbers with the INCL tax pricing -  the base price needs to have more than 2 decimals  or the rounding can make the difference even larger. 

Offline Nuno Neff

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Re: Is there any way for tax to be included in product price?
« Reply #4 on: October 12, 2023, 08:35:39 AM »
I know all this llegrand, it's a shame that Abantecart doesn't work the same way as Prestashop, you've done a brilliant job with the Moloni extension, but Abantecart should change this pricing thing so that in the future I and others can have a site where the prices match, because having prices end up in strange numbers isn't very nice.

Offline llegrand

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Re: Is there any way for tax to be included in product price?
« Reply #5 on: October 12, 2023, 01:57:04 PM »
Hey Nuno,
I made the post here as this is a bit of a different issue -  we adjusted the core coding for your site for the Moloni invoicing  to work correctly on the product page etc.   But thought Devs should be aware of this for all admins using incl tax in the pricing.  The have moved the checkout issue to github for a solution and that will be a good thing.

You are still wanting to "back into" a retail price by adjusting the incl tax to be rounded.  The issue then becomes how many decimals for the retail price,  how to handle the rounding for display on the product page,   and how to work with the number of decimals places the Invoicing company (Moloni)  uses in their reconstruct of the line items.  Moloni  uses 6 decimals,  and refigures the line items then rounds.   You can see how there are several places that are concerned in the decisions. 

Cheers all, welcome to the confusion of decimals and rounding
Lee



Offline abantecart

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Re: Is there any way for tax to be included in product price?
« Reply #6 on: October 12, 2023, 07:48:32 PM »
We discussed this internally and will try to implement in 1.3.5. Feedback will be appreciated. Once it is ready on 1.3.5 branch we will let you know.
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Offline abolabo

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Re: Is there any way for tax to be included in product price?
« Reply #7 on: October 24, 2023, 08:47:56 AM »
This question has been asked a few times, but I've not found a satisfactory answer, or the responders have not seemed to understand the issue, so here goes.

I have stores with Opencart and Magento, and those platforms assume that product prices include any tax that you may assign to them. (I'm in the UK so our VAT tax rate is 20%)
So, for example, a taxable product with a price of 9.99 is assumed to be 8.32 + Tax when it comes to checkout.

It seems that AbanteCart ADDS the tax to the product price instead, rather than assuming it's included. So a taxable product at 9.99 becomes 9.99 + tax at checkout - 11.99.
I can zero rate my products, but if a B2B customer requires a VAT invoice, then this is problematic.

System > Settings > Checkout > Display Prices With Tax set to no just removes "inc. Taxes" off the product page.

Is there a way of getting AbanteCart to include tax rather than add tax to product prices? I use Magento so am not afraid of a little coding if it's possible.
It seems like a good platform for what I need, but I can't be doing trying to work out all my prices ex-VAT, what with all the rounding up/down issues.

TIA.

please test our solution in the dev version v1.4.0 and let us know
« Last Edit: April 18, 2024, 06:01:44 AM by Basara »
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