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Automattic / woocommerce-services

WooCommerce Services is a feature plugin that integrates hosted services into WooCommerce (3.0+), and currently includes automated tax rates and the ability to purchase and print USPS shipping labels.
GNU General Public License v2.0
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Tax calculation doesn't work as expected on the cart page for European countries #1947

Open grig-23 opened 4 years ago

grig-23 commented 4 years ago

Reported in:

2735965-zen

Describe the bug

Tax calculation doesn't function correctly at the checkout page.

To Reproduce Steps to reproduce the behavior:

  1. Set up an address in Spain as the store address.
  2. Set "default customer location" to "geolocate"
  3. Make sure WooCommerce Services is configured.
  4. Clear all rows from Standard Rates.
  5. In incognito mode, at the checkout page, the tax is not immediately calculated even though the country is detected. In many European countries, the VAT tax is the same for all addresses so I would expect not to see VAT (estimated for X country) - €0,00 because that is misleading. Screenshot Screenshot direct link: https://d.pr/i/DQOnW0
  6. Investigating further, I see that if there are no rows under "standard rate" (we deleted them on step 4) - WooCommerce Services creates a row like this after a particular address is entered at least once: Screenshot Screenshot direct link: https://d.pr/i/DLTKRq This row not useful for all other addresses in Austria so the tax will never be shown correctly to new users on the cart page unless they explicitly enter it.
  7. As a workaround, we can manually enter the tax rate for the whole country like this: Screenshot Screenshot direct link: https://d.pr/i/u03rQ0 In that case, the tax is calculated correctly: Screenshot Screenshot direct link: https://d.pr/i/gy0byx

This user reports that this used to be calculated correctly immediately in the past, although I'm not sure if anything changed or they recently removed a row which was applicable to the whole country.

It is required by law here to show the full price including taxes to potential buyers, you're not allowed to 'surprise' people by adding VAT or any other fees at the very end of the checkout process.

Expected behavior With geolocation enabled, I'd expect the tax to be displayed correctly at the checkout page before the address is entered. Tax estimated at 0 is misleading.

I know this kind of behaviour makes sense for U.S. stores but perhaps VAT rates could be pre-loaded for European countries if the store address is in Europe?

Since WooCommerce Services is primarily designed for U.S. stores where tax calculations are a lot more complex and this issue has a workaround (in Europe, tax rates can be entered manually for each country) - I'm assigning a "low" priority.

Isolating the problem (mark completed items with an [x]):

erikgeurts commented 4 years ago

I'm the person who reported this to WooCommerce support, and then following up with it, this issue was created.

It is my opinion that this issue should be high priority, as it affects a huge user base in the entire European Union.

erikgeurts commented 4 years ago

In addition, this is not about all European countries, it only affects sellers in the EU when selling to buyers also in the EU.