I have spent nearly 2 days now trying to get these damn tax rules to work in Magento.
I have a product. I have one Product Tax Class. I have one Customer Group. I have one Tax Zone (UK @ 20%). I have one Tax Rule for this zone, Product Tax Class and Customer Group.
The tax settings are as follows:
When I add a product to my cart, the product price is £695. The Cart totals are as follows:
This is clearly wrong. If the product price is £695 and I've specified that this price is excluding tax, then 20% should be added to this cost. At the very least, the two Grand Total costs should be different!
The two very last things I've done were to delete the cache manually (via FTP) and to re-index all the indexes.