Can Magento calculate shipping VAT correctly for the UK?
Of course - just use standard rate. Or zero rate if all your goods are zero-rated.
What if some are zero-rated and others aren't?
Ah, then sorry - Magento can't calculate your shipping VAT, because according to HMRC, the shipping VAT rate should be "the same rate as the goods being delivered or posted" (see this VAT guidance), so it should be pro-rata'ed based on the goods sent.
- Choose which countries pro-rata shipping VAT applies to.
- Also works for taking admin orders.
- Enable/disable by website.
- Correctly displays shipping VAT and total VAT in orders if summaries are enabled.
Compatible with1.6, 1.7, 1.8, 1.9, 1.9.1, 1.9.2, 22.214.171.124
Tested on Magento CE >= 1.6. Not designed for Magento < 1.4.
Tax must be set up on your site and products in order to calculate shipping VAT.