Cart Price Rules not applying on shipping VAT when rule applied on whole cart

[Romz]

Preconditions (*)

Magento 2.4.2
2.4-develop having EE and B2B Modules

Steps to reproduce (*)

Using Fresh magento installation with samples datas.

1. Create a tax rate (20%) applied on both products and shipping.
2. In Sales > Tax configuration Panel:
   1. Tax Class for Shipping : Taxable Goods
   2. Catalog Prices: Including Tax
   3. Shipping Prices: Including Tax
   4. Apply Discount On Prices: Including Tax
   5. Enable Cross BorderTrade : Yes
3. Create a new cart rule
   1. Coupon: Specific Coupon
   2. Apply: Fixed amount discount for whole cart
   3. Discount Amount: 56
4. Add a product in shopping cart (51$)
5. Go to checkout and use a shipping methods: Flat Rate 5$
6. Apply the cart rule using the coupon code

Expected result (*)

1. -56$ dicount applied
2. 0$ on Order total

Actual result (*)

1. -55.17$ discount applied
2. 0.83$ on order total

The discount seems to be only applied on Shipping amount excluding tax. In that case 4.17$.
That's explain the -55.17$ discount amount on shopping cart (51 + 4.17)

For more details about the issue and configuration, please check this link

---

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• Severity: S1 - Affects critical data or functionality and forces users to employ a workaround.
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• Severity: S3 - Affects non-critical data or functionality and does not force users to employ a workaround.
• Severity: S4 - Affects aesthetics, professional look and feel, “quality” or “usability”.

[m2-assistant]

Hi @Romz. Thank you for your report.
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• Information on your environment
• Steps to reproduce
• Expected and actual results

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[m2-assistant]

Hi @engcom-Oscar. Thank you for working on this issue.
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[engcom-Oscar]

Hi @Romz ! Thank you for your report.

Unfortunately, we are not able to reproduce the issue on a fresh 2.4-develop by following steps from this ticket.

Steps to reproduce (*)

1. Create a tax rate (20%) applied on both products and shipping.
2. In Sales > Tax configuration Panel:
   1. Tax Class for Shipping : Taxable Goods
   2. Catalog Prices: Including Tax
   3. Shipping Prices: Including Tax
   4. Apply Discount On Prices: Including Tax
   5. Enable Cross BorderTrade : Yes
3. Create a new cart rule
   1. Coupon: Specific Coupon
   2. Apply: Fixed amount discount for whole cart
   3. Discount Amount: 56
4. Add a product in shopping cart (51$)
5. Go to checkout and use a shipping methods: Flat Rate 5$
6. Apply the cart rule using the coupon code

Actual Result: ✔️
Order summary before applying coupon:

Order summary with discount after applying coupon:

Please recheck - may be you missed some details in issue description.

[Romz]

I found out that the issue is before the checkout step.

Here the steps to reproduce.

• Clear all cookies
• Add product in shopping cart ($22 in my case)
• Estimate shipping price (it show $10)
• Apply the coupon

Result:

Subtotal: $22
Dicount: $30.33
Shipping (Flat Rate - Fixed): $10
Tax: $0.28

Order Total: 1.67

The when I do the checkout process and set my address, the problem gone.

[Romz]

Hi @engcom-Oscar engcom-Oscar

I tried to use my $100 coupon on $102 subtotal + $15 shipping and I have an odd result. Discount applied: $101.58 which is more than the amount on my coupon rule.

[m2-assistant]

Hi @engcom-Echo. Thank you for working on this issue.
In order to make sure that issue has enough information and ready for development, please read and check the following instruction: 👇

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[engcom-Echo]

Hi Romz ,

The issue is not getting re-produced as per the steps provided . Requested you to kindly test the issue on latest version i.e. 2.4-develop, or provide further clarification to help us reproduce the issue.

Thanks

[4ctobias]

@magento give me 2.4-develop instance

[magento-deployment-service]

Hi @4ctobias. Thank you for your request. I'm working on Magento instance for you.

[magento-deployment-service]

Hi @4ctobias, here is your Magento Instance: https://d0f456901f993a68b3e51efd011f9f03-2-4-develop.instances.magento-community.engineering
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Login: b68fb7d6
Password: f7a07f47c010

[4ctobias]

@magento give me 2.4.2-p1 instance

[magento-deployment-service]

Hi @4ctobias. Thank you for your request. I'm working on Magento instance for you.

[magento-deployment-service]

Hi @4ctobias, here is your Magento Instance: https://d0f456901f993a68b3e51efd011f9f03-2-4-2-p1.instances.magento-community.engineering
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[4ctobias]

Hi,

I am fully able to reproduce this with the upcoming 2.4-develop as well. It depends on the following settings (its a typical European set up - as we have to provide gross prices for products, services and shipping for customers B2C):

• Shop-Configuration, Tax, Tax Classes => Tax Class for Shipping set to "Taxable Goods"
• Shop-Configuration, Tax, Tax Classes => Set "Catalog Prices","Shipping Prices", "Apply Discount on Prices" to "Including Tax"
• Shop-Configuration, Tax, Tax Classes => Set "Apply Customer Tax" to "Before Discount"
• Shop-Configuration, Tax, Tax Classes => Set Enable Cross Border Trade to "Yes"
• Add Tax Zone/Rate for Germany with 19 % (all ZIP Codes)
• Add this Tax Zone to the current Tax rule
• Add a Cart Price Rule with no conditions, with a coupon code and a fixed amount for the whole cart for the value of 50, and apply this coupon to Shipping Amount
• Change the Flat rate shipping rate from "Per Item" to "Per Order"

Now I added a product for 28$ and go to the cart page ("Edit and review cart")

• When the coupon is not applied we have a subtotal of 23,53 $, the shipping of 4.20 $ is applied, the order total is 33, tax: 5,27)
• If I apply my coupon (limited to 50 $) I get the error: Subtotal is still 23.53 $, the discount amount is -32,20 $, the shipping flat rate is 4.20 $, the tax is still 5.27 $, the order total is 0.80 $

I expect a order total value of 0.00 $.

As I have a Tax rate of 19 % the 0.80 order total is exactly the tax of the shipping rate (5 $ gross, 4.20 net).

If I apply this 50 $ coupon to a cart with a value more than 50 $ all works fine and is correct - so it seems that the tax of the shipping is not used correctly when using a fixed coupon if the cart value is less than this maximum discount value.

Best,

Tobias

[4ctobias]

For a quick/hot fix I have overriden the Magento\SalesRule\Model\Validator (with a preference-for in a di.xml). Within the processShippingAmount() I changed the processing within the \Magento\SalesRule\Model\Rule::CART_FIXED_ACTION-handling in the switch. I changed from

if ($cartRules[$rule->getId()] > 0) {
    $shippingAmount = $address->getShippingAmount() - $address->getShippingDiscountAmount();
...

to

if ($cartRules[$rule->getId()] > 0) {
    // Fix: Manual fix to respect shipping VAT if the possible fixed coupon value is > subtotal + shipping
    if ($rule->getDiscountAmount() + $shippingAmount-$address->getShippingAmount() < $address->getSubtotalInclTax() + $shippingAmount) {
        $shippingAmount = $address->getShippingAmount() - $address->getShippingDiscountAmount();
    }
...

Its not a clean solution:

• Doing a preference for replacement for a Magento-Base-class is bad
• The code above does not check if the shipping has an assigned tax class in the current store view - it just assumes that this is fact
• Same applies to the fact that the code assumes that all prices are incl. tax.
• The better solution would be to fix the $shippingAmount-assignment directly instead if checking the rules discount amount plus the shipping tax versus the subtotal incl. tax and the shipping amount

But as a short and quick solution (until the issue is solved by itself) this will work.

[magento-engcom-team]

✅ Confirmed by @engcom-November
Thank you for verifying the issue. Based on the provided information internal tickets MC-42852 were created

Issue Available: @engcom-November, You will be automatically unassigned. Contributors/Maintainers can claim this issue to continue. To reclaim and continue work, reassign the ticket to yourself.

[Thundar]

@magento give me 2.4-develop instance

[magento-deployment-service]

Hi @Thundar. Thank you for your request. I'm working on Magento instance for you.

[magento-deployment-service]

Hi @Thundar, here is your Magento Instance: https://d0f456901f993a68b3e51efd011f9f03-2-4-develop.instances.magento-community.engineering
Admin access: https://d0f456901f993a68b3e51efd011f9f03-2-4-develop.instances.magento-community.engineering/admin_532b
Login: cc06d6a0
Password: 18d8b5349234

[ABC-Chefkoch]

Hello,

facing same problem on 2.4.4 on catalog inc taxes (same configuration as start topic)
Discount code configuration (50€ fixed values for whole cart with "Apply to Shipping Amount")

please provide fix or any hints for fixing

[timbaltissen]

Exact same issue in 2.4.3-p2, please provide the fix. Thanks a lot.

[anvanza]

@timbaltissen @4ctobias ,

Have you found a solution for 2.4.5?

[m2-assistant]

Hi @engcom-Delta. Thank you for working on this issue.
Looks like this issue is already verified and confirmed. But if you want to validate it one more time, please, go though the following instruction:

• 1. Add/Edit Area: XXXXX label to the ticket, indicating the functional areas it may be related to.
• 2. Verify that the issue is reproducible on 2.4-develop branch
     Details

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[engcom-Delta]

Hi @Romz ,

Thanks for your reporting and collaboration.
We have verified the issue in latest 2.4-develop instance and the issue is reproducible.
Kindly refer the screenshots.

Steps to reproduce :

1. Create a tax rate (20%) applied on both products and shipping.
2. In Sales > Tax configuration Panel:
   Tax Class for Shipping : Taxable Goods
   Catalog Prices: Including Tax
   Shipping Prices: Including Tax
   Apply Discount On Prices: Including Tax
   Enable Cross BorderTrade : Yes
3. Create a new cart rule
   Coupon: Specific Coupon
   Apply: Fixed amount discount for whole cart
   Discount Amount: 56
   Add a product in shopping cart (51$)
4. Go to checkout and use a shipping methods: Flat Rate 5$
5. Apply the cart rule using the coupon code

Observe , cart price rule is not applying on shipping VAT when rule applied on whole cart.

Thanks.

[github-jira-sync-bot]

❌ Cannot export the issue. This GitHub issue is already linked to Jira issue(s): https://jira.corp.adobe.com/browse/AC-834