Incorrect VAT on digital downloads

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  • David Orf
    Junior Member
    • Nov 2016
    • 9

    #1

    Incorrect VAT on digital downloads

    I have VAT applied at product level (at 20%) this seems to be calculating correctly for our physical products (except for shipping issues mentioned in other post), however for our 3 digital products there is something very wrong, the ebook that retails at £12.99 should include about £2.17 of VAT however the checkout page is showing £4.57 VAT the other two books are priced at £8.99 and should thus include about £1.50 VAT however checkout is showing £3.91 so in both cases the system is adding an extra £2.40 of VAT if I select multiple copies of the book it adds a consistent £2.40 of extra VAT

    For all ebooks Weight is set to zero and "This Product is shippable" is not selected, no shipping charge is being shown at checkout and yet this mysterious £2.40 of VAT is being added incorrectly

    On further investigation the amount of extra VAT changes depending on which country is selected which suggests to me that it is charging the extra VAT based on shipping, but as a download no shipping is taking place !
    Last edited by David Orf; 12-15-2016, 05:59 AM.
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