Only part of a product’s price liable for VAT

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10 years 9 months ago #143709

Hello, thanks for this great software.

I would like to know if Hikashop is able to handle the following situation:

A book is priced at £50. Books are zero-rated for VAT (sales tax) here in the UK (= 0%).

There is also a collector’s edition of the same book, which contains some pieces of artwork etc. This is priced at £500. Those pieces of artwork etc attract standard rate VAT (20%). According to the client’s accountant, the ideal situation would be if £50 of the £500 price could be zero-rated (0%) and the remaining £450 (representing the artwork etc) attract standard rate VAT (20%).

I haven’t been able to find or think of a way to deal with this, so any suggestions gratefully received. Otherwise, I suppose I could just apply one of those tax rates to the special edition and ask the accountant to work out the tax him/herself.

Thanks in advance!

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10 years 9 months ago #143757

Hi,

If it's only for one product, then that's easy.
Create a new tax rate of 18% and create a new tax category and finally a new tax rule linking the tax rate to the tax category.
Then, in your product, you select that new tax category.
That way, the VAT for that product will be 18% and thus the equivalent of 0% of 10% of the price +20% of 90% of the price.

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