[META] Use order discount with VAT

Hi Axel,

Thanks for all your work on this issue.

We have a B2C store in the UK and are seeing some strange VAT calculations after applying these patches and enabling the proportional vat module. Once a product discount is added, the vat display on the product page is wrong and on the cart page completely off.

Are there any additional configurational steps or rules that need to be adjusted to make all these patches work?

Many thanks,
James

Hi folks,

Am currently testing this and running into some issues with unusual pricing - I can see if the pricing array is charging the vat twice, or if it is firing a second time to recalculate correctly?

The baseline (test) configuration is as follows:

A test product, priced at 8.33 (ex vat). UK VAT (20%).

This seems as expected (See Image 3) - However when we add a discount, things get a little funky (image 4):

If we add a 10% Discount (using the discount module) the price now goes up! Our 8.33 base product, is now showing as 11.63 (See Image 2). We are using a line item discount (using discount module) and 'formatted price' to display the line item value.
(Note: adding shipping complicates this still further).

The desire is to take the discount off the gross value, (10.00 becomes 9.00), and recalculate the proportional vat after discount. I actually want to modify the totals the customer sees to simply show subtotal, discount, shipping, new-total - all inc vat - but retain the ex-vat calculations for the invoice)

The summary totals are:

Line Items - £11.63 (should be £10.00, confused as to why this has increased!)

Subtotal - £8.33 (I would ideally show 9.00 (subtotal after discount) here, but the correct ex-vat subtotal would be £7.50 after discount?)
20% VAT - £3.30 (20% vat on 7.50, i.e. £1.50 would now be correct here?)
10% Off First Order - £0.83 (this is 10% off the ex-vat base price, am looking for 10% off the whole, this is correct net, but not gross)
Total - £10.80 (from a user perspective, they are expecting £9.00, (10% off the original £10.00, a £1.00 discount)

The rules evaluation log looks like this:

0 ms Reacting on event Calculating the sell price of a product.
5.294 ms Evaluating conditions of rule Calculate EC Supply VAT. [edit]
" Evaluating or Place of Supply is in United Kingdom. [edit]
11.819 ms The condition component_commerce_vat_place_of_supply_gb evaluated to TRUE [edit]
11.824 ms AND evaluated to FALSE.
11.883 ms Evaluating conditions of rule First Order Discount. [edit]
12.234 ms The condition commerce_product_contains_products evaluated to FALSE [edit]
12.241 ms AND evaluated to TRUE.
" Rule First Order Discount fires. [edit]
0 ms Rule First Order Discount fires.
0.08 ms Evaluating the action commerce_discount_percentage. [edit]
" Reacting on event Added an order discount.
0 ms Reacting on event Added an order discount.
0.155 ms Evaluating conditions of rule Add proportional VAT to discount. [edit]
0.162 ms AND evaluated to TRUE.
" Rule Add proportional VAT to discount fires. [edit]
0 ms Rule Add proportional VAT to discount fires.
0.067 ms Evaluating the action commerce_vat_proportional_apply. [edit]
1.239 ms Rule Add proportional VAT to discount has fired.
1.428 ms Finished reacting on event Added an order discount.
7.037 ms Rule First Order Discount has fired.
19.358 ms Evaluating conditions of rule Unset the price of disabled products in the cart. [edit]
19.496 ms The condition data_is_empty evaluated to FALSE [edit]
19.596 ms The condition entity_has_field evaluated to TRUE [edit]
20.105 ms The condition data_is evaluated to FALSE [edit]
20.112 ms AND evaluated to FALSE.
20.168 ms Evaluating conditions of rule Calculate VAT. [edit]
20.175 ms AND evaluated to TRUE.
" Rule Calculate VAT fires. [edit]
0 ms Rule Calculate VAT fires.
0.071 ms Evaluating the action commerce_vat_place_of_supply. [edit]
" Executing rule Calculate United Kingdom VAT. [edit]
0 ms Executing rule Calculate United Kingdom VAT.
0.153 ms Evaluating conditions of rule Calculate United Kingdom VAT. [edit]
" Evaluating or Place of Supply is in United Kingdom. [edit]
1.343 ms The condition component_commerce_vat_place_of_supply_gb evaluated to TRUE [edit]
1.348 ms AND evaluated to TRUE.
" Rule Calculate United Kingdom VAT fires. [edit]
10.59 ms Finished executing of rule Calculate United Kingdom VAT.
41.275 ms Rule Calculate VAT has fired.
61.474 ms Finished reacting on event Calculating the sell price of a product.
" Reacting on event Apply a discount to a given order.
" Reacting on event Before saving a commerce order.
" Reacting on event After updating an existing commerce order.
" Reacting on event Select available payment methods for an order.

Looking at the pricing array using this:

$line_item = commerce_line_item_load(1073);
dpm($line_item->commerce_unit_price[LANGUAGE_NONE][0]['data']['components']);

We get:

... (Array, 4 elements)

0 (Array, 3 elements)
name (String, 10 characters ) base_price
price (Array, 3 elements)
amount (String, 3 characters ) 833
currency_code (String, 3 characters ) GBP
data (Array, 2 elements)
included (Boolean) TRUE

1 (Array, 3 elements)
name (String, 28 characters ) discount|10% Off First Order
price (Array, 3 elements)
amount (Float) -83
currency_code (String, 3 characters ) GBP
data (Array, 2 elements)
included (Boolean) TRUE

2 (Array, 3 elements)
name (String, 23 characters ) vat|gb_standard|20_2011
price (Array, 3 elements)
amount (Float) 300
currency_code (String, 3 characters ) GBP
data (Array, 2 elements)
included (Boolean) TRUE

3 (Array, 3 elements)
name (String, 23 characters ) vat|gb_standard|20_2011
price (Array, 3 elements)
amount (Float) 210
currency_code (String, 3 characters ) GBP
data (Array, 2 elements)
included (Boolean) TRUE

Have spent a very long time trying to work this out, any help would be appreciated! I am using the current kickstarter (updated via pantheon), the devel versions of commerce_vat and commerce_discount and all the patches above are applied.

Cheers!

Comment to add image 4 referenced above.

Can anyone confirm if they have the same issue? Or conversely if it works for them on the current kickstarter release? Really need to get this resolved this week.

Hi Axel,

Actually sitting here chewing it over atm - I have come to the same conclusion, but I have not yet worked out why :P Does the rules reaction rules log data seem correct? I can confirm that this behaviour only occurs when the proportional vat rule is in play.

I am currently testing implementing everything from scratch in a new kickstarter2 install to see if I can replicate this, or if its down to a site specific config. Thanks again for the work on these needed UK updates.

Thanks Alex,

Have just got back from a family Birthday - I am seeing similar behaviour on a brand new Kickstarter site, where the vat rule is firing twice. Am going to create another test use case that covers everything and document it (Reverse calculation, 2 line items, 1 % order discount excluding shipping, 1 line item discount, shipping cost. Display of items 'inc vat' in the checkout, correct vat invoice production at end of process).

Will get every step documented alongside the rules array and the debug info. Also sending you a PM!

Hi,
Thanks for all yours work on this issue
Did you solve this issue with your brand new Kickstarter @Mizpah ?
I just want my product to have the correct taxe when they are discounted.
I try so many thing and I can't get it to work.
On kickstart v2 there is not the Commerce VAT module by default, do I need to install it to solve this issue?

Thank you Alex

Have you tested this with fixed_amount discount that results in free orders ? It seems doesn't work properly.

Is there any intentions to make this work with the native commerce_tax module?
I just made a vanilla install with latest modules (except rules 2.8..), where the problem exist. I also tried all dev-releases with no luck.

Depending on the weight of the discount rule I can get VAT or DISCOUNT right, but not both.. The final price calculated is correct though.

Hi Axel,
I started doing further testing and when working with order discounts ($ off) it works correct for me.

But when working with product discounts, suddenly the calculation goes wrong:
- the VAT amount on line item level gets a strange 41,77 % amount instead of the default 21%
- it does not matter if I use $off or %off, the discount is always resulting in $off

I'm also getting this warning:
"Warning: Illegal offset type in isset or empty in commerce_currency_load() (line 493 of /var/.../httpdocs/sites/all/modules/commerce/commerce.module)."

I will check if I'm working with all the latest patches and report back after testing.

Thanks Axel,

after some testing today I found this problem:

1. When I apply a order discount: all OK
2. When I apply a product discount: all OK
3. When I apply both a order discount AND a product discount on THE SAME PRODUCT: VAT calculation is wrong
=> it looks like in that case both taxes are calculated and are added so we get some kind of a double tax...

Thanks Axel :-)

Well, i confirm the Problem mentioned by maxplus above.

i think the discount is calculated from the line item price incl. Vat - while using % off discount.

Fixed amount off, seems to be correct.

Hi again guys,
I've apllied both patch 2418033-2 and 2276335-8, but VAT is still displayed wrong (with product % off). :(
Are you using commerce_vat or commerce_tax?

People using Commerce Discount with Commerce Tax can find a way to solve it here : https://www.drupal.org/node/2429595

Enjoy!

Hi,

I think we need a rule where we calculate proportionality based on the line items including VAT. I think this is the rule used in Sweden.

Would this go into commerce_vat_proportional module?

I don't want to sound rude, but why am I completely ignored?
Stating the issue persist with commerce_tax and asking for guidance isn't looked good upon.. apparently

@axel.rutz #23
Sorry, my mistake. I just called the tax office to get this sorted out (it only took an hour). The amounts are calculated excluding VAT applied on the discount excl. VAT if selling to corporations and applied reversely if the price is incl. VAT selling to consumers.

Case closed :-)

pictures at #14 are correct. discount and coupon module doesnt work correct with tax module or vat (and eu vat) module! is ti a problem of the tax / vat module? or of the discount module? i dont know...

not international?? but tax isnt international...

Tagging for Commerce Sprint and marking for 1.0 release, to get working with VAT/tax.

Trying to clean up all these various issues that duplicates of one another.

Actually, will leave this open as it points to other issues as well. Just updating one of the issue links.

Actually, the issue #2429595: Order discounts are not taken into account during tax calculation is about commerce_tax, not commerce_vat.

Please tell me if I misunderstood the problem, but here are my thoughts. Note that I'm working in REVERSE mode so for me, everything is based on the price including taxes because my store is mainly Business To Customer and not Business to Business (that's how it works in France and maybe in other countries).

For this workcase, the commerce_vat module is fine for the product_discount. It's working well with discounts.

You can enhance the display with this two hooks :

/*
 * Implements hook_commerce_price_component_type_info_alter().
 */
function MYMODULE_commerce_price_component_type_info_alter(&$component_types) {
  // Change the "Subtotal" label by a more explicit "Excluding taxes" label (in french : "Sous-total HT")
  $component_types['base_price']['display_title'] = t('Total (excl. taxes)');
}

/*
 * Implements hook_commerce_price_formatted_components_alter().
 */
function MYMODULE_commerce_price_formatted_components_alter(&$components, $price, $entity) {
  // Display the discount before displaying VAT
  // Don't know why, but before that, discount had a NULL weight.
  foreach ($components as $key => &$component) {
    if (strpos($key, 'discount|') !== false) {
      $component['weight'] = -10;
    }
  }
}

The VAT is calculated for each product, relatively to the discounts, and that's fine cause different products can have different VAT rates. The discounts and VATs are then added in the Order total calculation.

The problem is when we use an order_discount.
The VATs are not re-calculated. So they are wrong.

Two cases:

- When it's a percentage discount: just use a product discount. The result will be the same and as the VAT is calculated on products and not on order, it will work well.

- When it's a fixed discount: there's a problem and we need some improvements for this case. The VAT is already calculated and if we add a fixed discount on the order calculation, the VAT will not be updated.
Also, with a fixed discount amount and multiple TVAs rates, how do we decide how to reduce each TVA rate ?
My suggestion would be to calculate what percentage of the order total is the fixed discount and to apply this percentage to each VATs of the order total.

Any thoughts or suggestion ?

I use this with giftcards (commerce_gc) so I can't use the commerce_discount_order_discount_line_item rules event. The commerce_line_item presave event did the job with the following modifications:
1. Apply the patch in #2797207: Pass entity objects instead of wrappers.
2. Add a rules action to the rule that sets the commerce_line_item:commerce_total:data value to commerce_line_item:commerce_unit_price:data.

The above configuration also works for discount based order coupons, even for discount amounts greater then the order total. (Have not tested product discounts yet.)

We also don't get the negative order totals mentioned in #2429595: Order discounts are not taken into account during tax calculation but I think that issue is for commerce_tax, not for commerce_vat. So I'm not even sure I need the patch in #2429595: Order discounts are not taken into account during tax calculation.

Yes, for commerce_vat you don't need #2429595: Order discounts are not taken into account during tax calculation.

Below is the working configuration we use (in a drush makefile format). Only the VAT-relevant patches are shown, there are some others that should be irrelevant.

With this we can use order discount coupons (commerce_discount + commerce_coupon modules) and giftcard coupons (commerce_gc module) in a way that they always decrease the VAT price component of the order total proportionally to the respective products' line item total price.

Applying a coupon with larger amount than the order total also yields the expected 0 VAT.

Also works with products with different VAT rates.

; Dev version because of https://www.drupal.org/node/2597566
projects[commerce_coupon][type] = module
projects[commerce_coupon][download][type] = git
projects[commerce_coupon][download][url] = http://git.drupal.org/project/commerce_coupon.git
projects[commerce_coupon][download][revision] = 5b2d5f46bf1445112c8b020b84027e92e00a0832

projects[commerce_discount][version] = "1.0-alpha8"
projects[commerce_discount][patch][] = https://www.drupal.org/files/issues/commerce_discount-2429595-32-vat.patch

projects[commerce_gc][version] = "1.0-rc1"
projects[commerce_gc][patch][] = https://www.drupal.org/files/issues/commerce_gc-2801405-2-vat-support.patch

projects[commerce_vat][version] = "1.0-rc2"
projects[commerce_vat][patch][] = https://www.drupal.org/files/issues/commerce_vat-2276233-10-reverse.patch
projects[commerce_vat][patch][] = https://www.drupal.org/files/issues/commerce_vat-2276331-1.patch

projects[commerce_vat_proportional][type] = module
projects[commerce_vat_proportional][download][type] = git
projects[commerce_vat_proportional][download][url] = https://git.drupal.org/project/commerce_vat_proportional.git
projects[commerce_vat_proportional][download][revision] = 3bf62f7463276d6a831674d45cdd6739640438d3
projects[commerce_vat_proportional][patch][] = https://www.drupal.org/files/issues/commerce_vat_proportional-2801451-2-fix_formula.patch
projects[commerce_vat_proportional][patch][] = https://www.drupal.org/files/issues/commerce_vat_proportional-2801467-2-giftcards.patch

Our rule export is:

{ "rules_my_discount_vat" : {
    "LABEL" : "My Discount VAT",
    "PLUGIN" : "reaction rule",
    "OWNER" : "rules",
    "REQUIRES" : [ "rules", "commerce_vat_proportional", "entity" ],
    "ON" : { "commerce_line_item_presave" : [] },
    "IF" : [
      { "entity_is_of_bundle" : {
          "entity" : [ "commerce-line-item" ],
          "type" : "commerce_line_item",
          "bundle" : { "value" : {
              "commerce_discount" : "commerce_discount",
              "giftcard_use" : "giftcard_use"
            }
          }
        }
      }
    ],
    "DO" : [
      { "commerce_vat_proportional_apply" : { "commerce_line_item" : [ "commerce_line_item" ] } },
      { "data_set" : {
          "data" : [ "commerce-line-item:commerce-total:data" ],
          "value" : [ "commerce-line-item:commerce-unit-price:data" ]
        }
      }
    ]
  }
}

(Note that it's using a different rules event and an additional data_set action.)

I don't dare to update the issue description yet, since there seems to be an unclear legal point in #2801451: Fix formula.

comment #43 works for more but you don't need the patch for commerce_discount if you use the latest version (beta5 for the moment)

The only issue for me right now is that I have to refresh the page one extra time for the discount to be applied. But it could be something else on my page causing that one.

Our current working VAT+discounts+giftcards makefile is the following. (Not all patches are relevant.)

projects[commerce][version] = "1.14"
; Improve product loading in commerce_product_reference_entity_view() (https://www.drupal.org/node/2724647)
projects[commerce][patch][] = https://www.drupal.org/files/issues/commerce-2724647-improve-product-loading-30.patch

projects[commerce_ch_vat][version] = "1.0-rc1"
projects[commerce_ch_vat][patch][] = https://www.drupal.org/files/issues/commerce_ch_vat-2920600-vat2018-4.patch

projects[commerce_coupon][version] = "2.0"

projects[commerce_discount][version] = "1.0-beta5"
; Add currency support https://www.drupal.org/node/2345311
projects[commerce_discount][patch][] = https://www.drupal.org/files/issues/commerce_discount-2345311-13-currency.patch
projects[commerce_discount][patch][] = https://www.drupal.org/files/issues/commerce_discount-2429595-47_vat.patch

projects[commerce_eu_vat][version] = "2.4"

projects[commerce_gc][type] = module
projects[commerce_gc][download][type] = git
projects[commerce_gc][download][url] = http://git.drupal.org/project/commerce_gc.git
projects[commerce_gc][download][revision] = 44c09d387e83df7b25bf7be3c2e2f9e911da009b
projects[commerce_gc][patch][] = https://www.drupal.org/files/issues/commerce_gc-2650048-2-column.patch
projects[commerce_gc][patch][] = https://www.drupal.org/files/issues/commerce_gc-2801405-2-vat-support.patch
projects[commerce_gc][patch][] = https://www.drupal.org/files/issues/commerce_gc-2534226-5-multicurrency.patch
projects[commerce_gc][patch][] = https://www.drupal.org/files/issues/commerce_gc-gift_card_checkout_via_rules-2470557-13-7.x.patch
projects[commerce_gc][patch][] = https://www.drupal.org/files/issues/commerce_gc-2862812-2-preserve_gc_transactions.patch

projects[commerce_vat][version] = "1.0-rc2"
projects[commerce_vat][patch][] = https://www.drupal.org/files/issues/commerce_vat-2238545-2.patch
projects[commerce_vat][patch][] = https://www.drupal.org/files/issues/commerce_vat-place_of_supply-2567147-3.patch
projects[commerce_vat][patch][] = https://www.drupal.org/files/issues/commerce_vat-2276233-12-reverse.patch
projects[commerce_vat][patch][] = https://www.drupal.org/files/issues/commerce_vat-2276331-1.patch

projects[commerce_vat_proportional][type] = module
projects[commerce_vat_proportional][download][type] = git
projects[commerce_vat_proportional][download][url] = https://git.drupal.org/project/commerce_vat_proportional.git
projects[commerce_vat_proportional][download][revision] = 3bf62f7463276d6a831674d45cdd6739640438d3
projects[commerce_vat_proportional][patch][] = https://www.drupal.org/files/issues/commerce_vat_proportional-2801451-2-fix_formula.patch
projects[commerce_vat_proportional][patch][] = https://www.drupal.org/files/issues/commerce_vat_proportional-2801467-2-giftcards.patch

Our proportional VAT is applied on line item presave via rules:

{ "rules_my_discount_vat" : {
    "LABEL" : "MyDiscount VAT",
    "PLUGIN" : "reaction rule",
    "OWNER" : "rules",
    "REQUIRES" : [ "rules", "commerce_vat_proportional", "entity" ],
    "ON" : { "commerce_line_item_presave" : [] },
    "IF" : [
      { "entity_is_of_bundle" : {
          "entity" : [ "commerce-line-item" ],
          "type" : "commerce_line_item",
          "bundle" : { "value" : { "commerce_discount" : "commerce_discount" } }
        }
      }
    ],
    "DO" : [
      { "commerce_vat_proportional_apply" : { "commerce_line_item" : [ "commerce_line_item" ] } },
      { "data_set" : {
          "data" : [ "commerce-line-item:commerce-total:data" ],
          "value" : [ "commerce-line-item:commerce-unit-price:data" ]
        }
      }
    ]
  }
}

Hello,
I intended to try this method, but after installing https://drupal.org/project/commerce_vat_proportional, I get a unknown event "commerce_discount_line_item" ?
Is there any incompatibility with discount 1.0B5-3 ?
Thx