Magento Tax Calculation Incorrect

1
votes

Hi currently running into an issue with magento 1.9 tax calculations.

I have a product setup as £10.82 with VAT of 20% to be added. The price including VAT is £12.98.

When 1 product is added to the cart everything is ok but if I add 7 the total should be £90.86 but its showing as:

Subtotal - £75.74 VAT - £15.15 Total - £90.89

Therefore 3p of VAT extra is added. Please advise on how I can fix this.

1
magentomagento-1.9tax

1 Answers

0
votes

This is not a bug. Total £90.89 is correct but if you want total sum without "extra" 3p of VAT, you can select a different method of calculating VAT.

£10,82 * 20% = £2,164 = £2,16
total: 7 * (£10,82+£2,16) = £90,86

vs

7 * £10,82 = £75,74
£75,74 * 20% = £15,148 = £15,15
total: £75,74 + £15,15 = £90,89

Check Tax Calculation Method in Settings.