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Webbia
Webbia
In Sweden it is illegal to not add tax on the payment charges, as well as any fee. When I asked ViArt to fix this problem, as the system do not add tax on the payment fee, they answer that they have never heard about this before. Is it really only in Sweden that you have to pay tax for payment fees? Wall Bash
And they won´t fix this problem but ask me to pay $100 to fix it as a customization. Bad
From today, this issue is critical for me since the largest payment system in Sweden, Klarna (earlier known as Kreditor), is now refusing anyone to use their services if the tax is not assigned to the payment fee since they cannot do anything illegal.
 
TOCDCO
TOCDCO
I've never heard of this taxes like this, but if it's unique to you, then I understand the 100.00 quote. Is the payment fee a flat rate? if so, just increase the payment fee for the tax amount?
 
Webbia
Webbia
Well, I don´t think the problem is unique for me, it regards all ViArts customers at least in Nordic countries, and maybe more.
Yes, I have thought about just adding it to the fee, but problem is not solved, since the tax amount also have to be stated, and it will be to small when the payment charge tax is not added to it.. Sad
 
TOCDCO
TOCDCO
Just modify the template to display a note under the field, that splits out the amount for the customer?
 
SajMalik
SajMalik
Are you talking about Value Added Tax - the same tax that is added to products sold? This is the only tax we have in the UK - and in France, Germany etc., as far as I know.
 
I am not sure I understand you clearly.
 
So, if you have a fee that attracts the tax, I would either do as Dan suggests or, if appropriate treat the fee as a products and get the tax added automatically.
 
Webbia
Webbia
TOCDCO: It has to be written out on the invoice as well as in the webshop. And according to ViArt this can only be done by changing all of the checkout process..
 
CristopherO: Yes, I assume it has to be value added tax since we only have one kind of tax here and it is added to everything from products and invoice charges to health maintainance, food, services, insurance, you name it. Only thing that is tax free here in Sweden is health care (the part that is cruzial, not plastic surgery and so on), dental care and lottery..
But how do I make sure that everyone that chooses to pay by invoice get this product automatically? Or else, it will not be many customers who will remember to put this in the basket before going to checkout..
 
SajMalik
SajMalik
Please forgive me for not understanding.
 
It's just that it sounds as though this is getting unnecessarily complicated.
 
How is the invoice created - doesn't an invoice already include the tax?
 
Webbia
Webbia
ChristopherO: It´s all right, it´s not the easiest thing with our tax and this matter, I know!
The invoice is created including the tax, but the tax that is written out is not including tax on the payment fee.
Maybe an example would clear things out?
 
The customer want´s to buy a t-shirt and put this in the cart and the system then includes 25% tax. In the checkout the customers choose to get the t-shirt delivered at home, which adds shipping fee which also includes 25% tax. Then he/she chooses to pay by invoice, which costs an extra fee - which should also include tax by 25%, but in ViArts webshop this fee cannot be tax added. So, the system then sum the total goods amount excl tax (which is right), the total sum (which is right), the total amount excl tax (which is wrong) and the total tax sum (which is not right since the invoice tax is not included) and writes this in the webshop, on the invoice and in the order confirmation to the customer.
 
T-shirt 100 SEK (75 SEK + tax 25 SEK)
Shipping 25 SEK (20 SEK + tax 5 SEK)
Invoice fee 30 SEK (should be 24 SEK + tax 6 SEK, but is just 30 SEK)
 
In the webshop:
Sum 125 SEK exkl tax
Tax sum 30 SEK
Total Sum 155 SEK
 
Should be:
 
Sum 119 SEK exkl tax
Tax sum 36 SEK
Total Sum 155 SEK
 
SajMalik
SajMalik
Ah! So you add a fee for payment by invoice - additional to the price for goods and delivery.
 
Could you set up a Payment System called INVOICE ME
then create an automatic fee
 
Settings > Orders > Payment Systems > INVOICE ME > Edit Payment System : Fee Settings
Processing Fee [00] Percentage per order total amount -- [ 24:00 ] Amount per order
 
TOCDCO
TOCDCO
My word! If we could just stop being so fee happy. Really? A fee to send an invoice? My God y'all
 
SajMalik
SajMalik
I couldn't get away with such a thing in my market !!!
 
Webbia
Webbia
Christpher: Yep, that is what I have done, but the system doesn´t add tax on that payment by invoice fee on any of the two choices. And that is the whole problem.
 
TOCDCO: I would rather have it without all the fees also, but the invoice company who is responsible for the invoices (they pay the webshop owner directly regardless if the customer has payed them or not), charge a fee for every invoice they send out, and if you don´t wan´t to loose money on every sale, then you charge the customers. Sadly the citizens in Sweden are used to all of these fees, and do not react badly to them. Maybe this has to do with all of this bloody tax that we pay all the time! On the other hand, health care is almost free here, and I am grateful for that..
Last modified: 21 Jun 2011 4:52 PM
 
TOCDCO
TOCDCO
to be honest, 100.00 for this random customization, is quite a steal. I'd jump on it if I were you.
 
SajMalik
SajMalik
Ah! You are factoring then?
You wouldn't get away with adding the finance house fee to your bill in the UK - you really are lucky.
Yes, I agree with my friend - seize the custom coding from ViArt.
 
TOCDCO
TOCDCO
@Chris, yes, it wouldn't go over well here. People freak out when they see a charge for tax on product let alone charge just for sending them a bill. They'd just go elsewhere. I hope that the webshop that Webbia is talking about has prices so far below the average that even with a charge people are getting a steal. I'd almost go to a site that charged more for a product just in spite of them even considering to charge me a billing fee.
 
SajMalik
SajMalik
Yes, that's interesting.
When I find someone adding charges after the purchase is decided I feel cheated.