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VAT adding up incorrectly on orders

VAT adding up incorrectly on orders



I have a Magento store, in the past VAT has not shown on any orders, I followed the instructions on Magento's site to set up my VAT rates as I am in the UK ( Our products already have VAT included so instead of including the VAT in the price of the products it adds the VAT on top which is incorrect.

ie: Product is £5.00 - VAT is £1.00 - total £6.00.

It should read: Products is £5.00 - VAT is £1.00 - Total should still be £5.00


Do I need to change the prices of all the products in my store to exclude VAT or have a set the tax rules up incorrectly.


Any help would be much appreciated.



Re: VAT adding up incorrectly on orders

You need to define whether catalog prices include tax or not. Go to System > Configuration > Sales | Tax > Calculation Settings and check out field named Catalog Prices.

Tanel Raja