My store is VAT registered and set up to have the 20% Sales Tax in the settings, however if I visit my own store and add an item to cart, viewing the cart shows my grand total as removing the sales tax.
For example:
Purchase 1 item at 0.03
Shipping 1.15
Total should equal 1.18
However it shows the following.
Subtotal £0.03
Shipping & Handling (Royal Mail Large Letter 1ST Class) £0.96
Incl. 20% Tax £0.17
Grand Total £0.99
Why does my shipping have the VAT removed? Is this because I am logged in as myself and therefore the system deduces that I shouldn't be paying VAT. If so, this is incorrect because members of the same EU state should be paying each other VAT. It is only VAT registered members of differing EU states that should have the VAT removed.
Secondly the VAT that has been removed totals 0.18 not 0.17 as shown.
I have only just opened my store so this has not affected me yet.
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