Paypal charging double tax

[Mark Kostner]

Hi ,

there seems to be a bit of an issue with paypal and taxes.

If you setup taxes in delavo and then a customer from that country orders using paypal they are charged tax twice.

Unfortunately it's not as easy as just deleting the tax setting for your coutnry becuase other payment processors still need it.

For example if you are using eway and paypal then eway needs the tax information setup in Delavo while with paypal it results in double tax charges.

I add this here in bugs rather than feature requests becuase I think this is a oversite rather than a feature.

Hope it's all clear.

Mark

[Mark Kostner]

Hi,

Just a quick update.

this is still an issue in version 1.6 with the new 'included tax in price' feature.

We have setup 10% tax for Australian residents and used the "included in product price feature"

Now lets say a customer purchase a $247 product (which includes the tax)

If a customer selects Australia as their country and then uses the eway payment gate, when they arrive at the processing page for eway the amount is $247

If on the other hand the customer selects paypal then the amount at second page (where the complete the transaction) is $271 (247 + 10%)

Obviously this is incorrect and the customer is paying tax twice. At this point I havent' checked if this also occurs with other payment processors. But I can confirm it is happening with paypal.

Would really like to see this issue fixed asap.

Mark.

[Mark Kostner]

Hi there,

Just a quick update.

If you're selling from in Australia to the Australian market and using paypal watch out - you may be breaking the law.

It is a requirement here in Australia to provide your clients with a price inlcuding GST, unfortunately if you are using paypal, then on your checkout pages you must show the price excluding GST because if you include the GST using the "Tax inlcluded in price" option paypal will still add the GST again (resulting in double taxing)

I'm currently going through investigation from the Department of commerce in WA. You should check with you local department what the regulation are in your state as you may be unwillingly breaking the law when using delavo and paypal.

Mark