Magento applies tax on product prices that already including tax - magento

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?

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/

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

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.

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 :)

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.

Related

Edit tax calculation in Magento 1.9

I am working on an existing Magento 1.9 project.
Here is the scenario
In admin panel i have set the product price to 118, now in front end it showing the price to 100 + 18% tax, same in the checkout cart.
I just want to show 118 without any tax, how can i do that. Any guidance or pointing in direction will be a great help, this is my first php work..
Update to question Now i have update all tax rate to 0, but it is still reducing the prices as mentioned above, so i look at the My SQL table Sales_flate_quote, and it shows the price in column name subtotal-->495.76, base_subtotal--> 585, the price i set in magento is 585. i am still finding the possible cause.
On the index page, price is showing 585, when i go in cart it shows 495.76
I'm not sure if I correctly understand your question, but are you aware of the tax display settings in the config (determining if the price should be shown including or excluding tax in frontend)?
Screenshot of Magento System Configuration
You can find these settings in System -> Configuration -> Sales -> Tax
There are settings for tax display type of product prices as well as cart prices.
Edit: I forgot to mention the calculation settings that are more likely what you are searching for:
Screenshot of Tax Calculation Settings
Especially have a look at "Catalog Prices" ("Whether catalog prices entered by admin include tax.")
You can find these settings in System -> Configuration -> Sales -> Tax too.

Magento tax issue, tax being applied twice

We have a Magento Store, running 1.7.0.2 CE edition.
We are setting up tax for Australia (GST). The tax is 10%.
It seems that the orders are adding our tax component twice.
Important: Now the order has a 50% catalog price rule used also. And not applied to shipping.
Screen shot of order can be viewed here: http://www.jasonshico.com/screenshot.jpg (see screen1 heading)
As you can see, I believe the GST(10%) has been added again, even though you see the products above the products include tax.
Here are some of my magneto settings:
(see screen2 heading on above screenshot link)
(see screen3 heading on above screenshot link)
Any help would be very much appreciated :)
Try following changes to your Tax Settings:
1. Tax Calculation Method Based On: Total
2. Catalog and Shipping Prices: Excluding Tax
Don't ignore such warnings:
Warning tax discount configuration might result in different discounts than a customer might expect .
Follow this article:
http://www.magentocommerce.com/knowledge-base/entry/magento-ce-18-ee-113-tax-calc
Please use this settings : After Discount for Apply Customer Tax option in screen2.
Your issue causes by that option. Now you are using the 50% discount and applies the tax before discount, so the tax will be applied to the original total.
It is just issue.
So you must use After Discount option
System->Configuration->Sales->Tax->Calculation Settings->Apply Customer Tax : After Discount

Magento: Catalog and product view price incl tax (VAT) is incorrect

I have looked online to find a solution to my problem but can’t see an answer to that specific issue.
I’m using Magento CE 1.8.0
The prices in the catalogue are excluding VAT
VAT is set at 20%
The system is set as Prices exclude Tax
The front end catalog list and product page are set to show both prices excluding VAT and including VAT.
My issue is that the price including VAT on some products is out by 1p on the catalog list and product view, although it is correct at checkout.
For example a product priced at £34.49 ex VAT shows a price inc VAT of £41.38 in the list view and product page (which is incorrect) and £41.39 in the checkout page (which is correct).
The issue is that I have a Google merchant feed that is sending the correct price inc VAT (£41.39) to Google and they’re complaining that the price on the website is different (even if it’s just 1p).
I have seen plenty of people with the ckeckout totals being incorrect while the catalog price is correct but not the other way around.
Has anyone got any idea what the problem could be?
We had a similar problem and in researching it found out that certain settings in System > Configuration > SALES > Tax > Calculation Settings can cause rounding errors.
This may have the solution for you:
http://www.magentocommerce.com/knowledge-base/entry/magento-ce-18-ee-113-tax-calc

Magento tax issue, tax is not counted

We have a strange issue in one of our shops. We have set all the tax settings, it are the same settings as by all of our shops and by this particular shop in the shopping cart and by orders tax is sometimes not counted. So by some orders we see tax and by others we do not.
So if we look at a product in de admin of the shop we see the tax so know that tax is counted,but when we put it in our cart he will not take tax.
It is also not a country issue, because we have just one country to choose from.
Has any one had the same problem or ideas what can be wrong?

Magento: show shipping price checkout including tax

We have a problem with the tax settings in Magento for the shipping method. If we are correct we have everything set up right. We want 21% of tax to the shipping methods and this is set up correct. In the image below you will see in the the totals a shipping amount of 3.95 euro and this is correct. In red you will only see that the shipping amount at the part of "verzendwijzen" shows 3.26, so without tax.
Does anyone know how to change this?
From the Admin panel, select System > Configuration.
In the Configuration panel on the left, under Sales, select Tax
Click to expand the calculation settings, and in the dropdown of shipping prices select Including Tax.
Also on the same page expand price display setting.
In display shipping Prices select including tax.
Hope these will do the thing if you haven't changed and core file of magento

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