Implemented Vat on Processing Fee

It seems that ochSubscriptions wants to collect VAT tax on the processing fee, even though product is VAT Exempt. Also something wonky with the invoice.

Please see attached images.

Thanks.
 

Hi Alex,

the product can be exempt from tax (and it is in your example), but the processing fee is not the same as the product: that will be taxed (with the high tax value).

you can have multiple products in your checkout, with and without tax, even with different tax rates.

so this is as designed. Always open for suggestions though.

As for the invoice, that I need to check. Will follow up here.

The company is incorporated in Canada. And in Canada if your annual turnover is less than $30,000 per rolling 12 month period, then we do not collect or remit any sort of sales or VAT taxes, so we should not be applying VAT to anything.

ok, so that would be a good 'feature' to add then: in the EU you always apply VAT unless the customer is a 'proven' business in another EU country (the VIES check).

Will add this to the list (on top) of things to figure out and add, that will then also address the invoice 'hick-up' on this.

Will be after version 5.4.0 is released though (first week of June) as I do not have the capacity currently do do this in that same release (feature freeze and all)

Will ping you here if I have it implemented or if I have follow up questions.

Hi Alex,

I just tried to reproduce the 'wonky' VAT on the invoice. I was not able to reproduce. So I have a product that I exempt from VAT and added a provider fee (that does have VAT = 21%), as you can see both 0% (exempt) en 21% (for the provider fee are listed on the invoice.
 
I think that you have altered the invoice template and removed the VAT section from the template? Can you check that?

FYI: I have just added VAT type to the payment plugins providers fee. So now (version 5.4.0) you can configure in the payment plugin what the VAT should be for the provider fee: if you set it to exempt it will be 0.
With this feature added you are good to go I think (also with your current invoice template where I suspect you removed the VAT part).

For a future version of ochSubscriptions (5.5.0) I will refactor the whole VAT implementation:

1. fix the exempt vat type > this should not display as 0% but should show no VAT line at all
2. add a global 'not registered for VAT' toggle: this will suppress VAT on everything (products and provider fee)
3. 0% VAT only results from a valid VIES check (EU)

Yes, it is true, I removed the VAT section from the invoice since it didn't apply to us. Is that why we are getting this charge?

Ok, good to know that there is not an issue here.

the charge (added VAT on the processing fee) is normally displaying below the subtotal on the VAT line(s), and then displayed in the total.
Because to removed the VAT lines, it doesn't display these and you see that the total is not equal to the subtotal (which is correct as the total has VAT added for the payment fee and the subtotaal not).

In the 5.4.0.rc.4 version and the stripe 5.2.0.rc.1 version you have the option to add the provider fee in the plugin and then also to configure if and what VAT should be applied to the provider fee.
In your setup you can configure it to 'exempt' and then you invoice will be correct.

All rc versions (package and payment plugins) are up for download: using these on my own production site, so basically you are good to go with this version (always backup!)

Hi Alex,

changes are in release 5.4.0 ( released today).
the bigger VAT / exempt changes are on the list for version 5.5.0
closing this topic for now.
feel free to open a new one when you have suggestions or run into issues.
regards,
Ruud.