Items AND shipping include taxes

Hi !

I’m in the situation in which I receive an invoice from a supplier, in which the total includes VAT. But when I say the total, I mean both the items listed are with a price that includes VAT, but also the shipping.

So I’ve got my l list of items, and then in the “Taxes and Charges” table, I’ve got both my shipping fees and my taxes:

I saw the option “Is this Tax included in Basic Rate?”. It works perfectly when I have no shipping fees, but as soon as I have shipping fees, I’m stuck.

Indeed, my shipping fees are added with the type “Actual”, as they do not depend on the net amount but on the location of the client, and VAT is the added as “On Previous Row”.

I’d like to be able to check “Is this Tax included in Basic Rate?” so that it adapts the shipping too and prints the value without VAT in the pdf, and then calculates the correct VAT value so that my grand total does not change.

How could I do this?

Thanks in advance for you help!

Just work out what the shipping charge is excluding VAT, and set the “includes VAT” to yes

Except that I can’t do that, since the I can’t set “includes VAT” to yes with the type “Actual”… and I can’t check it either in the second row as it says “For row 2 in Sales Taxes and Charges. To include On Previous Row Total in Item rate, rows 1 must also be included”

I believe it’s pretty common practice to create an Item called “shipping charges”, or “freight costs”. Set it as not tracked in the inventory and make sure it goes against the freight account head. I could be wrong, but I’m pretty sure I’ve noticed a few companies I’ve worked for doing it that way with a few different systems.


Did you find a solution?

Hi, we currently have the same problem, and I did not find anything on github. V15 updated works exactly the same.

We were using the practice of adding a shipping product, but what made us want to use the tax table is:

1-It wasn’t very elegant, create a product by script, leave it in a configuration, make sure of the accounts, put a special tax template on it if applicable, etc.

2-In our integration with woocomerce and other ecommerce, we realized that if you make a discount, it does not have to apply against the product shipment, this was the main reason.

3-Use the form proposed for the ERP, which has a harmony if there is a shipment generated by an ecommerce api etc or manually, placing a shipping Rule.

We were able to do it without problems, in the ways mentioned, but there is no way to solve if you have the tax included. There are certain controls as you mention, but also, taking out the frontend controls, backend controls start to appear which starts to get complex and not guarantee you what you are doing.

I don’t know if any of you had any progress or news in this time, or if you were able to solve it in any way.

Thanks, Federico

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Another workaround would be to just calculate the percentage value of the shipping charges in regards to the net total, and use that percentage instead of the actual value.

This way the type would be “on net total” and then you can apply the check box for inclusive tax.

But yeah, having actual chargers included in item price should be a feature.