Magento applies tax on product prices that already including tax

4
votes

I've added products prices with tax included (in the field Price [EUR] [ Including Tax]) Now when I put a product in the cart, Magento applies the tax to price that already including the tax!

Example: if the product has "Price [EUR] [ Including Tax]"=100€ in the cart I have:

Product price € 100

Sub total € 100

Taxes € 20

Totale €120 (but the correct price including taxes is 100€!)

instead I want this:

Product price € 100

Sub totale € 80

Taxes € 20

Total €100

I'v tried all the settings and I'm going mad! is there a solution?

5
magentocart
I have this exact same problem on v1.6.1 - which version are you using? Someone recommended re-indexing everything. Didn't work for me but maybe it will for you. - idophir
I'm using ver. 1.7.0.2 and reindex didn't work also for me - Fred K
Check out the link below. It says that the shipping origin country (System > Configuration > Sales > Shipping Settings > Origin) affects the the way the price is displayed in the cart. Strange... magentocommerce.com/boards/viewthread/78069 Good luck! - idophir

5 Answers

10
votes

I will repost idophir's comment, that fixed my issue that led me to this question. I wasted hours looking at tax settings and tax rules, to finally find my culprit in shipping origin settings:

Check out the link below. It says that the shipping origin country (System > Configuration > Sales > Shipping Settings > Origin) affects the the way the price is displayed in the cart. Strange.. http://www.magentocommerce.com/boards/viewthread/78069/

1
votes

Make sure that the Origin Country is correctly specified under Configuration > Sales > Shipping Settings.

0
votes

Go to System->Configuration->Sales->Taxes->Calculation

and search for Catalog Prices. Set the switch to "yes", then Magento assumes, that the tax is included in the catalog price.

Also check these setting in your store configuration scope, not only in default config.

0
votes

I had the same issue and i was checking for soutions and came through this topic. Right now i got solution to my problem so telling you here. In my case i previously selected 'Default Country' as United Kingdom in Default Tax Destination window, and i was signed in from an account with address other than United Kingdom. So all was fine, i tried every option and the tax was not updating on products and shopping cart page. When i logged out and found that it is working ;) Then i relized the issue. So if you have default country for tax calculation, check out the taxes with or without that. Hope it work for you. And sorry i am late :)

-1
votes

when you go to TAX calculation section (Thats System->Configuration->Sales->Taxes->Calculation) you will find "catalog prices" you can customize whether you want to include price with TAX or not.