Paypal Express - Taxes are charged everywhere

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7 years 5 months ago #271143

-- HikaShop version -- : 3.1.1
-- Joomla version -- : 3.7.2
-- PHP version -- : 5.6.30

Hi there,

I have paypal express set as a payment method, which means, the whole payment process including entering the address happens on the external paypal site.

Our Online Shop is situated withing the EU, that means we have to calculate taxes for each order within the European Union. This is working well.

But if an order is placed with a shipping address outside the EU, there shouldn´t be calculated any taxes. But Hikashop does calculate taxes, no matter where the order comes from.

I have set and activated tax zones for the EU (10%) and for countries like US, China, Japan, ... (0%) within our only tax category.
Since we are located in Austria, our main tax zone is Austria. As (nearly) everywhere in the EU, we have to display prices WITH taxes (this is law), so we cannot simply switch to another main tax zone.

Are there any settings to fix this or is this a paypal error?

Thanks!

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7 years 5 months ago #271158

Hello,

Answer you is hard because some information are missed.
In order to help you to complete your question, I will explain you how taxes are appllied.
- If the user is logged => HikaShop looks the default user address
- If the user AND there is a a current cart with a define Address => This last address define user Taxes
- if user isn't login => Taxes will be define from your "Main tax zone" define in Taxes part (in Main HikaShop options)



Other point but for Paypal's side did you know if re-calculate price with different taxes values, especially if User change is address ON Paypal website.
Because, as you see the solution, is from our, your side & and Paypal side.

Can you provide some configuration (screenshot of Taxes part, taxes listing) and context(way your website works for your customers) elements.
Awaiting news from you.

Regards

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Last edit: 7 years 5 months ago by Philip.

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7 years 5 months ago #271231

Hi Philipp,

Thanks for your answer.

In our paypal express plugin, we have activated the "Express checkout as guest"-Option. So no one has to login to buy products in our shop.

So what you are telling me, since our main tax zone ist Austria, the tax rate of Austria (in our case 10 percent) is added to each transaction before the guest user is transferred to paypal.

That would mean that the right calculation of the taxes can only happen on the paypal checkout page. I have tried around a little bit and changed the shipping address from a EU-address to some Outside-EU-adresses (and back) in the paypal form in order to get the displayed taxes adapted to the shipping address - but guess what? - nothing happens. Paypal keeps calculating 10% taxes, no matter where the customer´s shipping address is.

Can I assume that this mistake is completely on paypal´s side?

I already contacted the paypal-support, but it is very hard to get proper answers from there. I will let you know when I have any more info on that.

Regards,
Christoph

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7 years 5 months ago #271239

Hello,

Can I assume that this mistake is completely on paypal´s side?

Yes, you are assuming right.

if you're using Paypal Express ; you need to configure Paypal to handle the taxes.
When the customer change his address (his country) in Paypal ; it is Paypal which will handle the tax modification and HikaShop can't (and won't) do anything.

HikaShop send the tax details to Paypal so the same sum is display until the customer enter his address.
But you can also configure your HikaShop to not apply any tax to guest account (by changing the default tax zone in HikaShop).
In any case, when the customer address change, the tax should be reprocessed and if you do not set any tax config in Paypal, it can't do that job that it must do.

Regards,

Jerome - Obsidev.com
HikaMarket & HikaSerial developer / HikaShop core dev team.

Also helping the HikaShop support team when having some time or couldn't sleep.
By the way, do not send me private message, use the "contact us" form instead.

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7 years 5 months ago #271334

Thank you.

Taxes in paypal are configured correctly in our account (as they are for many years now).
And it is not an option to change the default tax zone in our Hikashop, because then we have all prices in Hikashop displayed without tax - but within the EU, it is law to display the end price including tax, there is no way around that.
(And even if I did change the default tax zone to, let´s say, United States, you still have the same problem on the paypal page - prices are calculated without taxes, even if you enter an address within the EU)

Anyway, it is a paypal problem. If I ever get an answer of paypal, I will be happy to share the information here.
all the best.

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