eStore – setting up Tax display in cart Correctly

[Leodore]

Hey There,

I currently have a product set up on my site and when you add it to cart this is what the outcome looks like.

[http://unilotto.com/wp-content/uploads/2012/11/cart-issue1.jpg]

What I would like to achieve is that when the cart has the product added to it it looks exactly like in this picture:

[http://unilotto.com/wp-content/uploads/2012/11/cart-issue2.jpg]

When the person goes through to Paypal then if they are from New Zealand, I would like them to be charged a Total of NZD$10.00 (Subtotal$8.70 + GST $1.30)

If the person buys the product and is not from New Zealand I would like them to be charged NZD$10.00.

Hope this all makes sense. How do I achieve this?

[Peter]

What you are asking for is that the tax amount is based on the region of the buyer.

You can only achieve this by using the PayPal profile based tax feature.

See this for more info:

http://www.tipsandtricks-hq.com/ecommerce/how-to-use-sales-tax-regional-international-when-selling-using-paypal-191

[Leodore]

Hey Peter,

Thanks for the response. I understand how to get paypal to calculate the tax based on the persons region…

What I am wanting to do is to get it so that the cart reflects what I am charging. I would like it so that for a $10 product if I enter the $10 amount in the product section and enable tax calculation that it works out that the tax is $1.30 (15%)… What it currently does is if I enable tax calculation is it adds the Tax amount to the sale price amount. So the product displays as $11.50 of which $1.50 (15%) is Tax. I hope this makes sense.

So regardless of where the person is from. I would like them to be charged $10. The People from NZ will have to pay GST as this is a legal requirement.

I also want to be able to change the cart so that instead of having the words “Tax” I would like to have it say “Tax (GST)”

Please let me know if you understand where I am coming from.

[admin]

Hi, I am not sure I understand your calculation. 15% tax on a $10 product means that the tax amount will be $1.5. So the total product price including tax will be $11.5.

How can a 15% tax on a $10 product be $1.3? What am I missing?

If you are wanting to do regional tax where you only want to charge tax for users from a certain region then the only way to do that is to disable eStore’s tax feature (uncheck the calculate tax option) and enable tax in your PayPal profile. This way when a user goes to PayPal for payment, PayPal will figure out the user’s country from the financial details and add the tax amount to the transaction (if needed).

[Leodore]

Hey Admin

15% on a $10 product means that the product is $8.70 and the GST amount is $1.30. Or at least that is how it works in New Zealand. I am not sure how it works in other parts of the world. If I change the price to $8.70 and the Tax is added to make the price $10 then the cart reflects what I want. However if the user goes through to paypal then if they are from New Zealand they are charged $10.00 but if they are from the rest of the world they are only charged $8.70 as that is what the product’s price is listed as…

Does that make sense?

[admin]

I see where the confusion is now. The amount you enter in the “Price” field of eStore is the non tax inclusive price. If you enable tax (remember not everyone uses tax) then the additional tax amount is added to whatever price you have specified as the “price”. Does that make sense?

To me it seems like you want the price to be the same for users who are paying tax (from NZ) on the product and people who are not paying tax on the product. This kind of doesn’t make sense mathematically. When you add/charge tax, the price amount is always going to be different than the amount without tax. This is how PayPal will calculate regional tax.

Let me ask you a question:

Do you want to charge tax to some user and not others (based on where they are from)?

– If your answer is yes, then you can’t use eStore’s standard tax feature (that tax feature is for charging tax to every customer globally). The only way to do regional tax is to use PayPal profile based tax. You will need to disable tax feature from eStore. All prices on the cart will (non tax inclusive price). When the user goes to PayPal, it will add the GST amount only for users from NZ. The other users won’t get any tax. The scenario you explained with the $8.7 above is exactly how it is suppose to work. Users from NZ will get charged $10 (this price is including GST). The other users who are not from NZ doesn’t get charged any tax and will pay $8.7 only.

[Author]

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