Have you noticed that the product price, or coupon value is different in the cart than how it appears on the product page? This is because, instead of charging you tax, we absorb the loss.
Every time we sell something that’s shipped to a country in Europe, we have to pay the government 20% pesky tax on the money we sell it for. With most retailers you, the consumer, would have to pay this. It would make the price of a £129.99 hood £155.99 inside Europe, but someone outside of Europe would only pay £129.99.
So that everyone across the world pays the same amount, we take the hit. We’re nice like that.
If you don’t reside in Europe, this won’t affect you.
How this affects products
Let’s say you buy a collar for £24.99. The cart price for this reads as £20.82, and the VAT shows £4.16, making a total of £24.98 (1 pence out due to rounding up/down).
How this affects coupons
Let’s say you bought a coupon as a gift. When the coupon is used, it looks strange…
Example:
You are gifted a £100 coupon, that you want to offset against a hood. You add the hood to the cart, and use the coupon code, but it only reads £83.33.
Wut! Where’s the rest?
Don’t panic it’s still there. Take a look at the hood cost, that has an RRP of £129.99 (inc tax). Your cart reads £108.32 for the hood. The voucher is reduced too, just so that when the tax is added back on, it all works out.
Example:
Here’s a sale within Europe, without a voucher.
| Pup Hood | £108.32 | This is the reduced amount so that it becomes £129.99 after tax is added back on |
| VAT | £21.67 | This is the tax added back on |
| Total | £129.99 |
Here’s a sale using a store credit / coupon / voucher of £100.
| Pup Hood | £108.32 | This is the reduced amount so that it becomes £129.99 after tax is added back on |
| Voucher | -£83.33 | This is a £100 voucher, accounting for mucking around with VAT |
| VAT | £5 | This is the tax added back on |
| Total | £29.99 |
So, while it may appear the voucher is only worth £83.33 in this instance, it’s actually reducing the total by £100.
We can see that £129.99 minus £100 is still £29.99.