Help Please: export(no tax) but not export(and no tax)!!

[googlybear]

I know the subject line doesnt make much sense, but I didnt know how else to put it.

Basically we have just had an order from australia, and they have selected that the shipping address is in the UK.

So basically the site was set up so that export orders do not pay VAT, so in theory this is all correct, but the products are not leaving the UK, so again....in theory they should be paying VAT.

Any help would be much appreciated, as our accounts department are starting to panic lol

Dave.

[wjcampbe]

There is a setting where you choose whether to calculate VAT based on Invoice Address or on Delivery Address - View | Business Settings - Tax tab, Advanced.

[googlybear]

Thanks for the reply,

Im a little confused regarding this,

If a customer comes on from ..lets say Australia for arguments sake, and orders something to be shipped to australia.

Then thats fine, you can take the invoice address and no VAT will be paid.

If a customer orders from the UK, and has it shipped within the UK, again the invoice address can be taken, and VAT will be charged accordingly.

But if a customer orders from Australia, but wants it shipped within the UK, and you take the invoice address, no VAT will be charged.

The same goes for if a customer orders from the UK, but wants it shipped to Australia. The invoice address will be taken, and VAT will be charged on something that is being exported.

How do we get around this problem.

[wjcampbe]

Set your site to tax on the delivery address.

If delivery is to UK - tax will be charged [correct UK company supplying goods in UK]

If delivery is to Australia - tax will not be charged [correct UK company exporting goods to non VAT-liable country]