Issues with listing price when discount code applied

[BEAMACADEMY]

Hi all,

I've got a listing for £135 and a discount code with £25 off totalling £110 when applied at checkout for customers.

However upon testing, when I added the discount code of £25, the RRP shows £130 (Etsy has taken £5 off my listing price) so the final price shows £105 with the discount applied.

I've tried generating a new discount code, I've tried changing the listing price, but the problem still exists, there's a discrepancy of £5 no matter what I do.

I can't be the only one experiencing this?

I've reached out to Etsy via Email and Live Chat but to only be ignored. I've also posted on Facebook groups but they suggested to post on this forum, hoping this will provide an answer!

[TBQSC]

Could it be a VAT issue?

[BEAMACADEMY]

No it's not VAT issue, I've already checked

[TBQSC]

Right now it is "back to school" season here in the US, so it would not surprise me if the $5 was an Etsy sponsored discount ... they randomly give these out to various buyers to generate sales ... sellers don't always know about them ahead of time, but it should say on the order what the discount was for.

[BEAMACADEMY]

Thanks for the response however this isn't the case as it's still on-going and there are no messages on the product page to say there is a sponsored discount...

[BEAMACADEMY]

Just an update - Etsy customer service have not responded via live chat or via email. The problems remains unsolved.

[CraftyCornishMaids]

@BEAMACADEMY 

It's VAT

as a quick check in your head, when looking at vat prices,
20% of £25 is £5,
so if they pay £25 less item price, they also don't pay the £5 VAT on that £25, so it will be £30 cheaper for them 

..... as a long workings out....

The £135 includes 20% VAT, you are selling instant downloads, and viewing from the UK

the listing price is £112.50 , then, plus 20% VAT (22.50) when viewing from UK = £135

deduct £25 from the listing price £112.5- £25 = £87.5

add 20% vat to £87.5  = £105

Etsy is correct, there is no problem to solve

[BEAMACADEMY]

Hi @CraftyCornishMaids , thank you for the clarification. That makes sense if they are not from the UK, however many of my customers are from the UK therefore VAT still applies, for example:

If a UK buyer purchases the digital product for £135 and the discount code is £25 off, then the total should still be £110. This is with the location setting to the UK in GBP.

However upon testing it out in incognito mode under the UK location, when entering the promo code with £25 off, it shows £105 and not £110 showing a discrepancy of £5. 

My question is why don't they pay the additional £5 of VAT? That's not how VAT works for buyers...

[CraftyCornishMaids]

@BEAMACADEMY 

It is 100% correct for UK buyers

The £135 includes VAT at 20%

When you give them £25 off, they don't have to pay the £5 VAT they would have paid on the £25 either

.....

look at it another way

your listing price, before VAT, is £112.50, with VAT, it comes to £135

When you give them £25 off, you are giving them £25 off your listing price

so that's £87.50, if you add 20% to that, it's £105