Having problems with getting your UK VAT shipping right? The UK has some interesting rules on calculating shipping on items that are mixed VAT and non VAT.
It’s not too bad if all of your products are either subject to VAT or not subject to VAT – in that case you either add VAT so shipping or not. It gets really “exciting” when you have a mixture of these items in your shopping cart as the VAT due on the shipping now depends on the value of the VAT vs non VAT items in the cart. If you add downloadable items as well then they don’t count for shipping so you have to remove them from the subtotals.
I have used this plugin with clients in custom versions and decided to release it to help out others having problems with the odd ‘apportionment’ rules that apply to shipping if you have a mix of items in your shopping cart that are subject to and exempt from VAT.
In the screenshot supplied with the plugin here is an explanation of how the VAT is calculated. UK VAT shipping is not a simple thing so it’s easier to follow with this worked example:
- In the screenshot example the total of the basket is 74.99
- VAT is due on the CD but not the book so the proportion of VAT on shipping is 55.00/74.99
- Shipping in this case is to the UK and 8.95 for the combined weight of these items
- So total shipping cost including VAT is 8.95 + 8.95 * .2 * (55/74.99) = 10.26
The plugin is available in the WordPress Plugin Directory
This is not tax advice so make sure you check the results are what you expect. You may even find it easier to dispense with this completely if you include shipping in the product price but this is has pros and cons and you really need to speak to your accountant.
For other plugins released by Peoples Geek please visit the plugin overview page