Another silly VAT question regarding invoice totals layout

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14Steve14
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Another silly VAT question regarding invoice totals layout

Post by 14Steve14 »

I have set up everything for VAT. I have show prices with VAT set to true.

I have just done a test purchase and think the invoice layout may confuse people as the totals do not add up as expected, as the sub total and the shipping cost already contain the VAT element which is also shown again separately before the total. A customer may add up the sub total, the shipping and the VAT and the total will be wrong.

Although its set up to show prices including VAT is there any easy way to show the Sub total and Shipping costs on the invoice less the VAT element.

Example of invoice totals in image below which if you add them up does not match correct invoice total which some may find confusing. If I change the setting in admin to show prices excluding VAT the totals show as expected but as I sell mainly to consumers its suggested that the prices should include the VAT element on the website.
invoice-total.png
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Mikepo
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Re: Another silly VAT question regarding invoice totals layout

Post by Mikepo »

As you have selected show prices including VAT, the Sub-total + P&P add up to 13.74. The row VAT @ 20% just shows the VAT content which is correct.

I assume if you show prices excluding VAT, then 8.32 + 3.13 + 2.29 = 13.74 would be shown.
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Re: Another silly VAT question regarding invoice totals layout

Post by heatherbell »

As many other businesses do, we simply change the Sort Order of Vat so it shows below Total and change the text to show e.g. "VAT included in Total"
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Re: Another silly VAT question regarding invoice totals layout

Post by 14Steve14 »

Mikepo wrote: Wed Mar 31, 2021 10:00 am As you have selected show prices including VAT, the Sub-total + P&P add up to 13.74. The row VAT @ 20% just shows the VAT content which is correct.

I assume if you show prices excluding VAT, then 8.32 + 3.13 + 2.29 = 13.74 would be shown.
I thought the best advice was to show prices including VAT if the store sells mainly to consumers, rather than to businesses. It is supposed to stop confusion and complaints from customers who say the prices on the website are not what they are paying as they have no real concept that VAT needs to be added.

Showing prices excluding VAT and the totals work as I would expect them to but I am used to adding on the VAT.
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Re: Another silly VAT question regarding invoice totals layout

Post by 14Steve14 »

heatherbell wrote: Wed Mar 31, 2021 10:03 am As many other businesses do, we simply change the Sort Order of Vat so it shows below Total and change the text to show e.g. "VAT included in Total"
Thats not a bad idea. Is it acceptable with the VAT man should they ever come and inspect?

I cannot get hold of the accountant today as he is away and hoped to get this all sorted today. I will think about your idea
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Re: Another silly VAT question regarding invoice totals layout

Post by heatherbell »

14Steve14 wrote: Wed Mar 31, 2021 11:48 am Thats not a bad idea. Is it acceptable with the VAT man should they ever come and inspect?
Yes, the requirement for an invoice is that your VAT number and the VAT amount collected to be shown.
IIRC, it is not just 'best advice' but a requirement to show prices inc VAT if selling to end user (customer) - you can show prices ex VAT if selling to a business.
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Re: Another silly VAT question regarding invoice totals layout

Post by ReneH4 »

I have been invoicing the standard way for over 10 years now, and I have never ever had any question from any customer, private or buisiness.

IMHO you worry about things that are not there.... :-)
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Re: Another silly VAT question regarding invoice totals layout

Post by 14Steve14 »

ReneH4 wrote: Wed Mar 31, 2021 4:03 pm I have been invoicing the standard way for over 10 years now, and I have never ever had any question from any customer, private or buisiness.

IMHO you worry about things that are not there.... :-)
The trouble is that things are there. The totals on the invoice do not add up as they should. That's the first thing I noticed when testing my site, and the first thing that someone else pointed out when testing earlier today. We will see what the accountant says tomorrow as I have a call booked with him.

May be its a case of changing the language somehow to show that the VAT total is already included but I can t see how that can be done without affecting other areas of the site.
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Re: Another silly VAT question regarding invoice totals layout

Post by 14Steve14 »

ReneH4 wrote: Wed Mar 31, 2021 4:03 pm I have been invoicing the standard way for over 10 years now, and I have never ever had any question from any customer, private or business.

IMHO you worry about things that are not there.... :-)
@ReneH4 Just a quick update. Been VAT registered for just 1 month and so far had 8 emails and calls from confused customers as totals do not add up correctly even though I know they are right, and actually lost sales of just under £500-00 because of it. Those customers added items to their cart and never completed the sale. When I used the recover carts module I was told that the totals did not add up correctly so they bought elsewhere as they thought I was ripping them off.

I will be contacting a developer to see if this can be sorted and corrected as I cannot afford to lose that many sales a month.
Last edited by ecartz on Sun May 02, 2021 9:25 am, edited 1 time in total.
Reason: Typo
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Re: Another silly VAT question regarding invoice totals layout

Post by heatherbell »

14Steve14 wrote: Sun May 02, 2021 8:17 amBeen VAT registered for just 1 month and so far had 8 emails and calls from confused customers as totals do not add up correctly even though I know they are right, and actually lost sales of just under £500-00 because of it.
Have you made the change as I previously suggested? viewtopic.php?p=3964#p3964
We've had this in place for nearly 15 years. This is how it appears on confirmation and on the invoice. We have 1000's of customers, both B2B and B2C and never had a single instance of customer confusion.
Screenshot 2021-05-02 092357.png
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