WooCommerce - Tax Calculated Incorrectly?

Question

I am running the latest WordPress with the latest WooCommerce, as of this writing.

I have one standard tax rule setup for 20%. This is UK VAT.

I have a product setup at £350. 20% of 350 should be 280.

20 x 350 / 100 = 70

However, on my product page AND checkout basket etc, the amount comes to: 291.67 (ex Tax). This should be 280. This is really wrong! So I'm not sure it's related to how I am coding the output of the product page, since I haven't touched the checkout template at all.

I am not sure if I have set something up incorrectly? Why am I getting such an odd number.

Some rules I have setup:

• Yes, I will enter prices inclusive of tax.
• Display prices during cart/checkout: Excluding tax.
• Shipping tax class: Shipping tax class based on cart items.

I really cannot work this one out.

The tax setup:

The tax on the checkout:

Any help greatly appreciated!

Thanks, Mikey

Answer 1

I think its correct, its not:

ExVAT = £350 - ((£350 / 100) * 20) = £280 

as that's calculating off the price that already includes the VAT, rather its;

 20% / 100 = 0.2
 0.2 + 1   = 1.2

 £350 / 1.2 = £291.67