VAT in Shipping Costs
Shipping costs in pixi are charged on customer invoice. Shipping costs are included in customer order and can be imported with the order at order import, or added when you manually create a customer order in pixi Customer Service.
Usually, shipping costs include VAT. Depending on the type of customer order, you have the following options:
B2B customer order type – The base price for B2B orders is net (because of VAT refunds), base price for shipping costs is also net
B2C customer order type – The base price for B2C orders is gross (because VAT is payable by the customer), base price for shipping costs is also gross
In case VAT is not charged on a customer order (for example, international sales) the following option is provided in pixi Customer Service:
Don’t charge VAT – VAT is not charged for a customer order, also VAT is not charged for shipping costs
For correct calculation of VAT for shipping costs, shipping costs for a customer order in pixi are distributed proportionally between the order lines.
Configuration
To control how VAT is charged for shipping costs, 2 settings in the VATs table are provided in pixi Control Center:
VAT in Ship Cost: If deactivated, VAT rate for shipping costs is set to 0 for the chosen country. If activated, VAT rate for shipping costs is set according to VAT rate set for items in customer order.
Charge High VAT In Ship Cost: If deactivated, the VAT rate for shipping costs is set according to VAT rate set for items in customer order. If activated, high VAT rate is set for shipping costs. VAT rate is taken from the VATs table for the shipping country.
These two options can be combined:
VAT in Ship Cost = OFF and Charge High VAT In Ship Cost = OFF: The VAT rate for shipping costs is always 0 %.
VAT in Ship Cost = OFF and Charge High VAT In Ship Cost = ON: The VAT rate for shipping costs is always 0 %.
VAT in Ship Cost = ON and Charge High VAT In Ship Cost = OFF: The VAT for shipping costs for a customer order in pixi are distributed proportionally between order lines. In case an order for example only contains orderlines with low VAT, this is also used for shipping costs.
VAT in Ship Cost = ON and Charge High VAT In Ship Cost = ON: The VAT rate for shipping costs is always High, regardless of the VAT rate used in customer orders.
These rules were also applied to return costs in the returns wizard.
See also: Returns Wizard
Shipping Costs in Partial Deliveries
Shipping costs can be set for every of customer order manually or imported with the order import. In case of partial delivery, shipping costs can be charged for each delivery or only for the first delivery of an order. The database setting Do Not Charge Ship Costs on Second Delivery in pixi Control Center > Database Settings > Shipping controls how shipping costs are charged:
DISABLED: Shipping costs are charged with every shipment on customer order
ENABLED: Shipping costs are charged only once per customer order. All further shipments are not charged.
When combining customer orders, the lowest shipping costs from orders that were combined are charged for the combined order.