[RESOLVED] About invoice

AndreF

I want to write a cart to give it away.
I see php knowledge is not sufficient but accounting knowledge is required too.
Question:
In cart they may choose main package. each pack may or may not have an addon and/or an extra pack too. the diff. of addon pack and extra pack is that the billing cycle of addon is the same as main pack but the extra pack is one time anyway.
so how to handle tax on cart?

I set a tax for main pack but it will be applied on subtotal of all main pack (+ addon + extra pack) by puuting addon and extra within paranthese I mean they might or might not be chosen on cart. so if only main pack is chosen tax will applied on it only.

But I guess this is not the correct way of applying tax? how about for renewal time as there would be main pack and/or addon pack only as extra pack is removed on renewal time as this one is one time? so for first order apply tac on subtotal of all these three and on renewal time applying it on just two items?

and how to show/list these items with susbotal and applied tax on invoice page?

any advice is appreciated.

AndreF

Any answer yet please?

benracer

if you are trying to add on tax to the cart before checkout then add it last by using this...

echo $total; // before tax - subtotal
$total = $total * 1.175; //This is for 17.5%
echo $total; // with tax

to show on each product/add on just print the price but do not use the same variable that is used for the sum of all of the products.

$price_of_item = $price_of_item * 1.175; //This is for 17.5%
echo $price_of_item; // with tax

AndreF

Hello,

Thanks for help, but sorry, I was not asking for php block and I know this forum is for php only. But I don't know any other forum to ask. actually I was asking about the laws of applying tax itself. I meant is it appropriate to apply the tax on the subtotal of all main+addon+extra package for the first time and applying it on main+addon on renewal time?(extra is not on renewal time as it was one time.)

any advice?

benracer

http://www.out-law.com/page-7512

dagon

may well depend on the legal jurisdiction but in most cases a sales tax is applied to the total purchase price

AndreF

so regardless what are chosen on cart, main, addon,extra and whatever is there apply a tax on the subtotal of all?

benracer

yes using what i posted will do the trick 🙂

benracer

Just make it before the postage is there is any 😉

AndreF

no postage is there. my cart is to sell php softwares. php software developpers may use my cart to sell their php software. and this tax thing is a feature for my cart. In US there would be no tax for non-physical products and php software is not a physical thing (obviously!) after payment buyers will have access to download area. but as I am going to give it away, this is just a feature. but I am wondering why some hosting companies apply tax as webhosting is not physical?

benracer

AndreF wrote:
hosting companies apply tax as webhosting is not physical?

If you are registerd as self employed in the uk you still have to pay tax on your profits!

AndreF

so the same law about selling php softwares as well?

benracer

i assume so, im not a tax expert so i could not confirm. i think that if you are registered for VAT then you have to pay tax on all your profits and prove where all the money is coming from at the end of each tax year. When i registered for selling online i was told i did not have to pay any if my profits did not exceed £5250 but i had to show them this. phone h&m revenue and customs and they will confirm 😉

AndreF

1) I am not in UK but I guess this is the seller who should have a VAT and not the buyer and this is the seller who applies the tax on products to charge the buyer? then pay it to the government as tax profit?

2) sorry as I am not familiar with UK law that link you posted is not easy to understand for me. so just in summary, I think if a registered for VAT is using my cart then the tax should be applied on the subtotal of whatever is chosen on cart?

benracer

Yes thats correct - wel for the UK, i cannot confirm for anything else as i have only had experience in the uk. As for you if you are selling and making profit then you would have to pay it. for the cart the seller should be able to choose the tax amount to be added to the sub total. this is needed as in different countries it is different. if you need help coding just ask 😉

benracer

make sure you have a terms and conditions page where it states that the seller is responsible for the tax charges as you may be liable for there mistake!

AndreF

not particular coding question for now, but if you have any special comments to share with me, I'll appreciate it. 🙂

so as about invoice listing. how to do so?
main pack : $xx
+addon pack: $xx

+extra pack: $xx

subtotal: $xx

tax: 2%

Total: $xx

or the line: "tax: 2%" is unnecessary?

benracer

the way i would do it is to have...
main pack : $5.00
+addon pack: $2.50

+extra pack: $2.50

subtotal: $10.00

tax: $1.75 (TAX @ 17.5%)

Total: $11.75

AndreF

Thanks for all helps. no more questions for now! 🙂

benracer

Please mark thread as resolved if i have answered your question 😉