VAT not showing for items im selling....

[sk1]

HI,

I have created a button for my website.

I have also set the VAT % in my profile.

When I click the buy button the VAT is not being added to the total??? I thought the process would add on the correct amount of VAT so that my clients can see exactly how much they have to pay.

I have considered adding the amount of VAT to the price during the creation of the button but im not 100% sure that my customers will be charged again for VAT once in paypal.

I suppose Im just a little confused about how Paypal handles VAT on purchases.

Any advice would be helpful.

S

[Ally63]

?

[PayPal_paula]

Hi Ally63, 

Have you set your VAT up on your PayPal account for items that you are selling?. 

If not please follow the steps below. If you have already and it is now showing please review your settings to ensure that there are no changes. 

You can customise the VAT rate charged on your sales from your PayPal account. Your shopping cart software can take this rate and add it to the final price of your sales.

PayPal won’t charge VAT on your payments unless you select this option and specify a rate.

To select this setting on your account:

1. Log in to your PayPal account at www.paypal.co.uk
2. Click ‘Profile’ near the top of the page.
3. Click ‘My selling preferences’.
4. Under ‘Selling online’ click ‘Update’ next to VAT.
5. Click ‘Add New Sales Tax’ in the Domestic or International section to add a new rate.
6. Enter the rate and click ‘Continue’.
7. Repeat steps 5 and 6 for each new rate needed.

I hope this helps

Paula 

[PCRobinson]

Hello, 

This may seem like a useless question but does Paypal charge there commission fee on top of the price for a product including VAT? 

Also we are based in the UK. If someone buys a product in the US will Paypal automatically adjust the VAT based on the buyers location?

Thanks for the help from anyone. 

[JonathanMills]

I'm still getting the same problem. I've tried all different combinations ie included in the post charges and excluded. I've ticked the correct country and rate and nowhere does it allow for the customer to see a VAT calculation.The VAT facility is simply not working.

[cushionsupplier]

Has anyone managed to find the answer to this yet. I have also ticked all the right boxes but still no VAT showing up. The VAT man won't be happy with me will he!!

[McLean]

Hi all - I've been following this thread.

Guess what we had a VAT inspection last month and our knuckles were wrapped - why? we need to show VAT in the paypal transactions.

Currently there appears to be no function to work out the VAT on transactions e.g. if someone buys a pair of trousers for £75 we want PayPal to work out the VAT element of this and show the customer. The only function appears to sell the good at nett value then add on the VAT after in checkout which isn't good for retail.

Anyone got any suggestions? have a I got this right? 

[SurgerySupplies]

@Mclean

You are spot on, i have told Paypal via their Merchant Technical Support Service, that we have a legal requirement to show the VAT in the shopping cart prior to the customer clicking to process their payment and being taken to PayPals site to proceed with the payment. I also made clear that under contract laws, not showing the VAT in the shopping cart is Misrepresentation of contract, and as all sales are subject to sales of goods/services contracts whether written, verbal or implied, that such misrepresentation would leave the contract as void. Basically paypals refusal/inability to show VAT along with the postage in the shopping cart, is leaving us online retailers open to being sued for not just misrepresentation of contract but also finanical detriement the customer incurred, purely because they were not aware their was to be VAT added onto what they were led to believe was the total amount due.

As i said, i am a member of the Consumer Action Group (aka Teaboy2) i specialize in consumer rights, Debt Matters, Contract law, and employment laws.

So paypal as you clearly are able to put Postage showing on the shopping carts, then why is it you are not showing the VAT as required by law. Ultimately we could sue PayPal to recover any legal cost and compensation we may have had to pay to consumers that take us to court because of this. The only reason no one has done so so far is because of them not being aware of their legal rights, but all it takes is one person with legal expertise/knowlege, to do so and then the rest will follow. Or, in fact, all it would take would be one thread started about this on forums similar to consumer action group. I will not be starting such thread myself, however if we do not get answers and see changes soon i may well have no choice but too, purely in the interest of consumer rights and in the interest of fellow online retailers. Though am sure a Complaint to the HMRC about this would not go a miss either, but it seems from McLean's post that they are already aware of this issue.

[Jenstrata]

I am still confused by this. I cannot make the VAT work inspite of activating it. I am not sure what this button does.

Can Paypal please explain.

What also is the current status of showing VAT on payments. Can we have a definitive statement from Paypal so I can show my accountant and HMRC?

[SurgerySupplies]

THe only answer i got was that the VAT will show when the customer has logged in and choosen their payment method and/or in the event they have no paypal account, the VAT will show once they have entered their card details, prior to being asked if they wish to proceed.

Also as for sandbox test, well from the reply i got VAT does not work with Sandbox as yet.

Am not happy about it but what else can we do other than switch to other shopping cart providers.

Also if you charge VAT then the VAT amount should be shown seperate from the sub-total amount. So it should show VAT and how much VAT applies to the invoice on each invoice/statement you issue.

[TheCMC]

Has this problem been resolved - as this forum seems ot end a couple of months back?  I am expreincing the same problem - i have the account set up correctly and no VAT is charged.  Interestingly VAGT was charegd on the account trasnactions through to July this year - I have the records of those transactions.