Food Safety Direct Ltd

Shipping VAT Issue

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We're using M2EPro with an eBay account where all the listings were already there and are effectively Third Party Listings within M2EPro.

We offer free shipping as standard on eBay, but with the option of a charged courier service. When orders are sychronised where the customer has opted for a £3 courier service. M2EPro takes the VAT setting for the eBay order and retrospectively adds a VAT charge for the shipping to the corresponding Magento order.

The following figures illustrate the issue:

  •     eBay Order: Product £12 (20% VAT) / Shipping £3 = Total: £15
  •     Magento Order: Product £10 / Shipping £3 VAT £2.60 = Total: £15.60
  •     Magento Should Be: Product £10 / Shipping £2.50 VAT £2.50 = Total: £15

i.e. The totals on the Magento order should match the totals on the eBay order

We also sell items that are VAT exempt, again with the following issue:

  •     eBay Order: Product £10 (VAT Exempt) / Shipping £3 = Total: £13
  •     Magento Order: Product £10 / Shipping £3 VAT £0 = Total: £13
  •     Magento Should Be: Product £10 / Shipping £2.50 VAT £0.50 = Total: £13

Having looked in eBay, we can't see anywhere obvious to set VAT on shipping of 20% as it should be and don't want M2EPro to decide the shipping VAT rate based on the eBay VAT rate.

Within our M2EPro account settings, we have the Tax Source set to eBay.

Setting it to Magento is not the solution as this ludicrously results in Double VAT (https://support.m2epro.com/knowledgebase/310704-double-vat/) - the extremely strange notion that having already taken an order in eBay and payment for it, that we would ever want to retrospectively add on further VAT.

Regarding the Double VAT issue, setting our catalog prices to Including instead of Excluding VAT is not an option as we're predominently a business to business seller.

Any help or thoughts much appreciated.

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I have write to m2e pro support about this big problem of software but they everiday write to me that no support with free plan. This ok but how can we buy professional plan if i have big big bug and negative seller performance and negative feedback becouse they have big problem aboutcthis more customer write to m2esupport and they notxresolve this? This is not is support tiket ... This is becouse m2e pro have big problem with magento child product and they not aolve this

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Indeed. Sadly in this case M2EPro are losing out. Whilst we don't sell much on eBay, we do have a thriving Amazon account with a good number of transactions which we would like to integrate with our Magento store.

Our intention was to trial M2EPro with eBay knowing there would be minimal impact to the business if it didn't work.

Having discovered a number of quirks including this shipping VAT issue for which there is no support, we'd be very reluctant to implement M2EPro with our Amazon set-up, especially as there are no sandbox options in Amazon and we'd be liable for monthly payments as soon as we signed up.

Whilst we understand the need for M2EPro to make money, their aim should also be to refine the product to ensure greater take-up.

We live in hope, but has anyone encountered this issue and come up with a solution?

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The problem with double vat calculation may be related to the 3rd party tool that is used for managing orders or tax prices. Such tools may break standard magento core logic and M2E works only with standard magento core system. But anyway, without more deep view on the problem it is not impossible to say for sure. You should contact support regarding this issue.

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We do have an Order Management extension, but the "Double VAT" occurs even when it is disabled.

The "Double VAT" issue is an accepted failing with M2EPro and Magento's de facto tax settings: https://support.m2epro.com/knowledgebase/310704-double-vat/

I'd assume it is actually because it is using Magento's default code, rather than M2EPro attempting to correct the issue with their own code.

Whatever the reason, it makes the M2EPro product hard to use for business to business sellers in whose interest it is in to display prices excluding VAT.

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For interest to the guys at M2EPro who you'd hope keep an eye on this forum, setting the Tax Source to eBay & Magento does NOT solve this issue.

VAT is still being added to the total, rather than calculated as part of the shipping as the initial example shows.

Anyone else out there have any suggestions?

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