Another shipping problem..

[herefordmaps]

Hello,

We use Actinic Catalog v 6.1.2 for our site. We predominantly sell maps and books which are exclusive of VAT. Our shipping system is set up so that 1 map costs £1.10 to send, with each additional map costing 50p. Our Business Settings are set up as follows:

1 | £1.10

The excess value is then set at £0.50 per 1. Tax is set to Pro Rata.

This works fine when people are ordering maps and books. The problem arises when someone orders a VATable item, for example map pins. Map pins cost £2.13 + VAT a pack (£2.50), and shipping is the same as for maps. So the total price for 2 packs of map pins plus shipping should be £6.60. However, Actinic shows this order to be £6.88. The VAT summary on an invoice report shows:


Net cost | Tax
17.5% £4.26, £0.74
Pro Rata £1.60, £0.28 Shipping

So for some reason Actinic is adding shipping tax AGAIN when ordering VATable items.
Any ideas? I think a way around it is to specify more quantities in the Shipping settings, but surely I shouldn't have to.

Many thanks in advance,

HMC

[cdicken]

This is working correctly (but is very confusing).

I take it the £4.26 purchase is two boxes of pins at £2.13 each. Pins are VATable so there is £0.74 tax added, making a grand total of £5.00.

The shipping on those two items is £1.60. This is £1.10 for the first box of pins and £0.50 for the second box of pins.

Tax is charged on shipping at 'Pro-Rata'. This means the total tax rate charged on the shipping is related to the proportion of VATable goods vs. non-VATable goods in your shopping cart. The shopping cart contained 100% VATable items so VAT was charged on shipping at the full rate of 17.5%.

On a £1.60 shipping charge, this equates to £0.28 VAT added on.

Thus the total order value was £5.00 + £1.88 = £6.88.

[herefordmaps]

Excellent! Thanks very much.