Hi team! Question about shipping and tax, and apologies if this has been raised before… I couldn’t find anything about it though.
I’m based in Australia, and here you don’t have to register for sales tax unless you have more than $75K revenue per year. This applies to the marketplace as well. So, while the marketplace may not be required to pay GST, some of the vendors may be.
On my development site I’m trying to configure the Vendor Shipping module to work correctly with the sales tax setting.
My tax setup is:
- I have a 10% sales tax (GST) set in WooCommerce, which oalso applies to shipping.
- I have set prices to be entered and displayed inclusive of GST.
- I have set Vendor Shipping to be taxable
- I have set for vendors to receive all shipping fees and GST collected
- Vendors can select, per product, whether the product is taxable, not taxable or if shipping only is taxable.
With the above settings, however, shipping is taxed regardless of what the vendor has selected for each product (even if they have selected for the product not to be taxed).
If I set Vendor Shipping to not taxable, then regardless of what the Vendor selects, shipping is not taxed.
I don’t know whether this is a bug or intentional… But unfortunately it doesn’t meet Australian requirements. 🙁 GST registered vendors are responsible for collecting GST on their sales, so I need for them to be able to select whether shipping is taxable. And at the same time, non-GST registered vendors would run into trouble with the tax office if their receipts/invoices indicate that they have collected GST on some of their sales.
In my mind, they way it should work is, it should be possible to override the Vendor Shipping tax setting on a per product basis. Also, the shipping fee on the product page should adhere to the WooCommerce sales tax setting on whether to show inclusive or exclusive of tax.
Thanks in advance for your help. And if I have missed a setting, apologies! I have been staring at it for two days straight and gotten nowhere.