Sales tax is not applied to shipping when using Paypal express checkout. The "Taxed line items: shipping" checkbox is properly checked under admin/stores/settings/taxes.

The sales tax is properly applied to shipping when using Paypal website payments standard.

Also, when using paypal express checkout, the first time through the process, no tax will be applied to the shipping cost as explained above. However, if one goes back from the "submit order" page to the "review payments" page, then hit "continue checkout" again, sales tax WILL properly be applied to the PREVIOUS shipping method selected (i.e. not the current shipping method, unless they are one in the same).

Thus, it appears that Ubercart is not loading the current shipping cost to properly calculate tax on; it only calculates tax on previously selected shipping costs, which for most users will be $0 as they won't hit back and re-select a shipping method.

This violates sales tax laws for the state of Texas and possibly other states, which is why I marked in critical.

Much appreciated.

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ubercart_bug.gif10.89 KBjmuessig
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Comments

nzcodarnoc’s picture

subscribe.

Also violates tax law in New Zealand.

msumme’s picture

I'm having the same problem on a site. It's configured and works properly on all orders that go through the standard checkout page. However, it does not work w/ Paypal express checkout.

NO TAXES at all are applied to paypal express orders.

This seems to be a big issue, since the site then has to pay taxes on the order, which, at 8%, is a fairly big problem when they're shipping in texas.

simon505’s picture

Any update on this issue yet?

TR’s picture

Version: 6.x-2.2 » 6.x-2.x-dev
Category: bug » support
Priority: Critical » Normal

How do you *expect* it to work? The thing about PayPal EC is that it is *designed* so that the Ubercart site does not collect customer data - instead the customer is taken directly to PayPal to log in and pay. Since Ubercart doesn't know the customer's state, how can Ubercart calculate the state sales tax?

With EC, you should calculate the tax on the *PayPal* side, by configuring your PayPal preferences at paypal.com. Or, if you want to collect customer data and do the tax calculation in Ubercart, don't use EC.

jmuessig’s picture

I'm using Paypal WPS now, so this is no longer a concern for me, but just to update the issue for others...

The sales tax IS calculated on return from Paypal. The issue is that it is only calculated on the subtotal, NOT including the shipping cost.

It is not a matter of lack of information. The 'submit order' page has all the information it needs to calculate the tax correctly, it just doesn't use shipping cost in the calculation.

longwave’s picture

Title: Ubercart fails to apply sales tax to shipping cost when using Paypal express checkout » Apply tax to shipping cost when using PayPal Express Checkout
Version: 6.x-2.x-dev » 7.x-3.x-dev
Component: Code » Taxes
Category: support » bug

This is indeed a bug.