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Discount coupons percentages calculated before tax

Posted: Fri Jun 15, 2012 2:46 pm
by activ
Hi,

I am running Opencart 1.5.3.1 with no mods or anything and the default theme.
The problem I am having is that when I create a discount coupon based on a percentage the amount of discount is calculated before adding vat, this results in an amount that makes no sense to the end customer. Not sure about the rest of the world but Dutch customers are used to not being bother by anything without vat so all discount should be on the price including vat.

Example: If the price excluding vat is 100 euro, the price including vat will be 119 euro and a 10% discount should be 11,90 euro. (not 10 euro which it is now)

Could you please either correct this or make it configurable?

Thanks in advance for taking the time to read this and maybe help out.

Re: Discount coupons percentages calculated before tax

Posted: Wed Jul 04, 2012 3:44 pm
by marissaj
I'm having the same problem and would be great if someone had a way to fix this???

Re: Discount coupons percentages calculated before tax

Posted: Wed Sep 05, 2012 5:00 pm
by daisybeedesign
I am having the same issue - I need the discount code to come off incuding vat

i.e £25 - 20% = £20 = £5 discount

£25 - vat = £20.83 - 20% code = £4.17 dicount

Re: Discount coupons percentages calculated before tax

Posted: Thu Sep 06, 2012 12:42 am
by ADD Creative
A 20% discount off the ex. VAT price, once you add the vat, is the same as 20% off inc. VAT price.

So inc. VAT price of £25 is £20.8333
20% of £20.8333 is £4.1667
So the ex. VAT price after discount is £20.833 - £4.1667 = £16.6666
20% VAT of £16.6666 is £3.3333
£16.6666 including £3.3333 VAT is £20

20% of the inc. VAT £35 price is £5
£25 - £5 = £20 which is the same result above.

I have tested this in OpenCart 1.5.3.1 and it works fine. If you do not get the same result it might be down to the Status or sort order of your Order Totals.

Shops in the UK will show the discount on the inc. VAT price in store. If you ask them for a VAT invoice, it will show the ex. VAT discount price, as it has to by law. See http://www.hmrc.gov.uk/vat/managing/cha ... -etc.htm#1

Re: Discount coupons percentages calculated before tax

Posted: Thu Sep 06, 2012 1:25 am
by SXGuy
100 + 20% vat = 120 inc vat
120 - 10% = 108 inc vat
108inc vat / 6 (20%) = 18
108 inc vat - 18 = 90 ex vat

100 - 90 = 10 = 10% discount (ex vat)
120 - 108 = 12 = 10% discount (inc vat)

Only way it cant be working for you, is if your not inputting the correct excluding vat price for your products. or your order totals are in the wrong order.

Re: Discount coupons percentages calculated before tax

Posted: Thu Sep 06, 2012 2:05 am
by ADD Creative
OpenCart will subtract the VAT on the discount from the total VAT at the end.

So taking your example, 100 - 90 = 10 (10% ex. VAT discount), OpenCart will display this.

10 * 0.2 (20%) = 2, OpenCart calculates the VAT on the discount amount.

20 - 2 = 18 (VAT), Opencart subtracts the VAT on the discount from the total VAT.

90 + 18 = 108, Opencat shows this as the total.

What final order total do you get for your example?

Re: Discount coupons percentages calculated before tax

Posted: Thu Sep 06, 2012 2:30 am
by daisybeedesign
I have my order totals laid out so it is

Subtotal
Vat
Discount
Shipping
Total

subtotal shows as ex vat - so discount comes off the ex vat price

So if my product is £25 inc vat
Sub total shows as £20.83
Discount is 20% = £4.166
So total product price with 20% discount is £20.83

I wanted this to be £25 (inc vat) minus 20% discount (£5) = £20 (inc vat)

I am a "moron" as pointed out by the big man Daniel this morning so I have no idea what I am doing wrong (and feel like shit for having had such a negative response to a query from a company I try and support and promote where I can).

Re: Discount coupons percentages calculated before tax

Posted: Thu Sep 06, 2012 2:17 pm
by activ
Okay, I do agree that the result is the same but I'd still like the option to show the discount as coming of the amount including tax. That's what Dutch customers are used to and they get confused with the current way.
If this could be configurable it would be really nice.

Re: Discount coupons percentages calculated before tax

Posted: Thu Sep 06, 2012 4:47 pm
by ADD Creative
daisybeedesign wrote:I have my order totals laid out so it is

Subtotal
Vat
Discount
Shipping
Total

subtotal shows as ex vat - so discount comes off the ex vat price

So if my product is £25 inc vat
Sub total shows as £20.83
Discount is 20% = £4.166
So total product price with 20% discount is £20.83

I wanted this to be £25 (inc vat) minus 20% discount (£5) = £20 (inc vat)

I am a "moron" as pointed out by the big man Daniel this morning so I have no idea what I am doing wrong (and feel like shit for having had such a negative response to a query from a company I try and support and promote where I can).
You have to have your Taxes (VAT) just before the final total. The discount is shown ex. VAT as that is how the calculations are done internally. It has to be this way as, at least in the UK, as you must by law show the ex. VAT total of all products shipping, and discounts on a VAT invoice. And you must also show the VAT due on the totals.

The order needs to be (this is the default on install).

Subtotal
Discount
Shipping
Vat
Total

I think what is confusing, is that the products lines show the inc. VAT price, that makes people think that the totals are inc. VAT when they are not.

Maybe there are extensions that will do want you want. The other option is to switch of taxes completely and just use inc. VAT prices for everything and do your VAT invoicing manually. But you would have problems if you sold outside the EU.

How OpenCart works internal is correct, this is not a bug, it's just some people want to show the information to customers in a different way.

The developers get a lot of bug reports that are not bugs. Only today some one told them that postcodes should not have letters in only numbers.

Re: Discount coupons percentages calculated before tax

Posted: Thu Sep 06, 2012 5:00 pm
by daisybeedesign
Hi Ad Creative

Thanks again for taking the time to reply - very much appreciated . I'll take another look at this today.

Re: Discount coupons percentages calculated before tax

Posted: Thu Sep 06, 2012 8:11 pm
by ADD Creative
Actually the default order is shipping before discount, but this does not effect the calculations.

Subtotal
Shipping
Discount
Vat
Total

Re: Discount coupons percentages calculated before tax

Posted: Thu Sep 06, 2012 8:37 pm
by SXGuy
change the order totals to this.

Subtotal
Shipping
Vat
Discount
Total

Does that do what you want?

Re: Discount coupons percentages calculated before tax

Posted: Thu Sep 06, 2012 9:41 pm
by ADD Creative
SXGuy wrote:change the order totals to this.

Subtotal
Shipping
Vat
Discount
Total

Does that do what you want?
The discount is calculated internally on the ex. VAT price so must always be before the VAT total, otherwise the VAT will be too high.

Re: Discount coupons percentages calculated before tax

Posted: Mon Jun 23, 2014 4:49 pm
by gibby
We have the same problems and unable to resolve it, making opencart useless for the UK market.

Has anyone managed to sort this issue for the UK?

We have used other carts that work fine with UK VAT & discount coupons

Thanks

G

Re: Discount coupons percentages calculated before tax

Posted: Mon Jun 23, 2014 10:56 pm
by Johnathan
As discussed in this topic, you need to make sure your "Taxes" Order Total comes after your "Coupon" Order Total.

Re: Discount coupons percentages calculated before tax

Posted: Tue Jun 24, 2014 6:32 pm
by trinkaljuneja
try sorting in order totals

Re: Discount coupons percentages calculated before tax

Posted: Tue Nov 24, 2015 1:07 am
by webdesires
We have developed a VQMOD which does what you need:

http://www.opencart.com/index.php?route ... n_id=24744