Value Added Tax (VAT)
Value added tax is attached to the product price and service fees in some jurisdictions.
By default, WebSphere Commerce lists product prices without taxes included in the product display page. Only after some products are added to the shopping cart as an order item can the tax amount be calculated according to the order item's address (the ship-to address) and fulfillment center (the ship-from address). Tax law in many jurisdictions, such as most European countries, Australia, Singapore, and so on, requires sales taxes be included in the price of a product. The prices are usually loaded from back-end systems with the VAT amount included.
- The VAT tax model is incompatible with the default WebSphere Commerce tax model and can be enabled at store level or site level as required
- When the VAT model is enabled, you will need to load the tax included product price into WebSphere Commerce
- When the VAT model is enabled, the different types of charges in WebSphere Commerce have VAT included
- Promotions and shipping calculations are all based on the VAT included amount
- The product prices with VAT included can be easily displayed on all product display pages and order pages
VAT model | Default tax model | |
---|---|---|
offerprice | Offer price with tax included | Offer price without tax included |
orderitems.price | offerprice.price, with tax included | offerprice.price, without tax |
orderitems.totalproduct | orderitems.price * orderitems.quantity | orderitems.price * orderitems.quantity |
orderitems.totaladjustment | Tax included | Tax excluded |
orderitems.taxamount | Product tax amount (no change) | Product tax amount |
orderitems.shipcharge | Shipping charge with shipping tax included | Shipping charge |
orderitems.shiptaxamount | Shipping tax amount(no change) | Shipping tax amount |
The grand total of an orderitem | orderitems.totalproduct + orderitems.totaladjustment + orderitems.shipcharge
VAT amount is already included in the other columns and the standalone tax amounts are for informational purposes only. |
orderitems.totalproduct + orderitems.totaladjustment + orderitems.shipcharge + orderitems.taxamount + orderitems.shiptaxamount |
Corresponding columns in the orders table | Same as order item level's | Same as order item level's |