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    VAT Negative Tax problem

    Store owner recently switched from Simple Validation to PayPal Pro for credit card processing. Now payments are being rejected for orders outside the VAT "zone". Any order that is not in the VAT "zone" is having the tax displayed as a negative value.

    The store has two VAT Rates configured:

    VAT Zero/Exempt Rate 0.00%
    VAT Standard Rate 20%

    The VAT Options:

    Other Basket Charges Rate: Not Taxed
    Product Price Includes VAT - checked
    Shipping Is Taxed - checked
    Shipping Includes VAT - checked

    Description for Tax-Exempt Orders: Tax free delivery outside EU

    The folks at PayPal took a look at the logs and sent a sample with the following note:

    The AMT variable below is passed to us by your cart, not calculated by us and should be the total of all the itemized amounts. You can see from this that your cart is actually reducing the total by the tax amount so this is definitely occurring prior to you sending the transaction to us to process.

    amt "122.66"
    itemamt "136.04"
    shippingamt "11.15"
    handlingamt ""
    taxamt "-24.53"

    So it looks like if it's an order that is not in the VAT "zone", it subtracts the amount. I guess I don't understand how the VAT calculations work, I would think it wouldn't just be added on. But then the "Product Price Includes VAT" is checked. So does that mean I need to check to see if the store owner has manually increased all product prices by 20%?

    Any insight into how all this works is greatly appreciated.

    Thanks!
    Leslie
    Leslie Kirk
    Miva Certified Developer
    Miva Merchant Specialist since 1997
    Previously of Webs Your Way
    (aka Leslie Nord leslienord)

    Email me: [email protected]
    www.lesliekirk.com

    Follow me: Twitter | Facebook | FourSquare | Pinterest | Flickr

    #2
    Re: VAT Negative Tax problem

    Leslie,

    I had development take a look and they said that including the VAT in the price is causing a negative basket value for customers that don't get charged tax. You'll have to uncheck 'Product Price Includes VAT' and allow tax to be calculated normally so when a customer shouldn't be charged tax it'll be be a $0 amount rather than a negative amount.
    Jim McCormick
    Miva Merchant Support
    866-284-9812

    https://www.miva.com

    Comment


      #3
      Re: VAT Negative Tax problem

      Thanks Jim, but if you mean for the store owner to remove the VAT tax from the product price (as in re-price all the products lower) and then have the VAT added on at checkout, that's a no go:

      We cannot show prices ex-VAT, that’s a huge wrist slap followed by big fine.
      Leslie
      Leslie Kirk
      Miva Certified Developer
      Miva Merchant Specialist since 1997
      Previously of Webs Your Way
      (aka Leslie Nord leslienord)

      Email me: [email protected]
      www.lesliekirk.com

      Follow me: Twitter | Facebook | FourSquare | Pinterest | Flickr

      Comment


        #4
        Re: VAT Negative Tax problem

        Leslie,

        They'll need to move a different payment gateway or use a different gateway for non VAT orders. Possibly something like the CBS Payment Supermod to restrict the payment method by location.
        Jim McCormick
        Miva Merchant Support
        866-284-9812

        https://www.miva.com

        Comment


          #5
          Re: VAT Negative Tax problem

          Lovely - they just signed up for PayPal Pro.
          Leslie Kirk
          Miva Certified Developer
          Miva Merchant Specialist since 1997
          Previously of Webs Your Way
          (aka Leslie Nord leslienord)

          Email me: [email protected]
          www.lesliekirk.com

          Follow me: Twitter | Facebook | FourSquare | Pinterest | Flickr

          Comment


            #6
            Re: VAT Negative Tax problem

            This is STILL a problem, still no answer? Restricting the payment method by location is not an option since the only payment method is PayPal Pro.

            Leslie
            Leslie Kirk
            Miva Certified Developer
            Miva Merchant Specialist since 1997
            Previously of Webs Your Way
            (aka Leslie Nord leslienord)

            Email me: [email protected]
            www.lesliekirk.com

            Follow me: Twitter | Facebook | FourSquare | Pinterest | Flickr

            Comment


              #7
              Re: VAT Negative Tax problem

              They could assign CC W/ Simple Validation and use something like CBS Payment Supermod to restrict payments from non VAT customers to use that module. They could then use the PayPal Pro terminal to authorize/charge the card.
              Jim McCormick
              Miva Merchant Support
              866-284-9812

              https://www.miva.com

              Comment


                #8
                Re: VAT Negative Tax problem

                How would they collect the CVV that they need?
                Leslie Kirk
                Miva Certified Developer
                Miva Merchant Specialist since 1997
                Previously of Webs Your Way
                (aka Leslie Nord leslienord)

                Email me: [email protected]
                www.lesliekirk.com

                Follow me: Twitter | Facebook | FourSquare | Pinterest | Flickr

                Comment


                  #9
                  Re: VAT Negative Tax problem

                  Leslie,

                  They would not be able to collect the CVV code with simple validation. The should be able to put the order through the gateway but it would most likely just be at a higher rate. As afar as I know this is an issue solely with PayPal and negative order charges. A better solution may be to move to a different payment gateway like Authorize.net
                  Jim McCormick
                  Miva Merchant Support
                  866-284-9812

                  https://www.miva.com

                  Comment


                    #10
                    Re: VAT Negative Tax problem

                    Different options are being considered, an additional cost of almost $300 a month is not really a viable alternative.
                    Leslie Kirk
                    Miva Certified Developer
                    Miva Merchant Specialist since 1997
                    Previously of Webs Your Way
                    (aka Leslie Nord leslienord)

                    Email me: [email protected]
                    www.lesliekirk.com

                    Follow me: Twitter | Facebook | FourSquare | Pinterest | Flickr

                    Comment


                      #11
                      Re: VAT Negative Tax problem

                      CVV is not normally required, why don't they just use Jim's original suggestion? That's "free"
                      Thanks,

                      Rick Wilson
                      CEO
                      Miva, Inc.
                      [email protected]
                      https://www.miva.com

                      Comment


                        #12
                        Re: VAT Negative Tax problem

                        Jim's second suggestion also required the usage of the CBS Payment Supermod to restrict payments. That mod could be purchased "outright" or subscribed to. The first one was previously ruled out.
                        Leslie Kirk
                        Miva Certified Developer
                        Miva Merchant Specialist since 1997
                        Previously of Webs Your Way
                        (aka Leslie Nord leslienord)

                        Email me: [email protected]
                        www.lesliekirk.com

                        Follow me: Twitter | Facebook | FourSquare | Pinterest | Flickr

                        Comment

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