cancel
Showing results for 
Search instead for 
Did you mean: 

Magento not calculating Tax / VAT 20%

Magento not calculating Tax / VAT 20%

Having a problem getting Magento to calculate 20% Tax / Vat

 

I have set Tax Rate to 20% and shipping origin to United Kingdom  but this is whats showing:

 

Subtotal £84.99

Tax £14.17
 
Grand Total£84.99

 

20% of 84.99 is not 14.17

 

Any ideas anyone?

 

 

Tags (2)
2 REPLIES

Re: Magento not calculating Tax / VAT 20%

Hi,
there is no problem there Smiley Happy This is a common 'mistake' when trying to 'back calculate' the VAT.
The VAT is applied on the price excluding VAT.
In your case, my understanding is that you have a total price excluding VAT of 70.825.
Adding VAT is 20% of 70.825 = 14.165.

So subtotal inc. VAT is 70.825 + 14.165 = 84.99.

Magento is right Smiley Wink


French Magento Solution Specialist.
Looking for Magento consultancy ? Contact me !

Re: Magento not calculating Tax / VAT 20%

Hi..I have  a similar query to calculate tax

 

  • I have configured tax slabs for each product, now what is happening is when a product is added to the cart, it takes the MRP and then add the relevant tax to it.
  • MRP is always inclusive of tax and hence the tax calculation has to be done as per the below

Eg :- if MRP is 100 and if the tax for this product configured is 14.5%, then the base price before tax is Rs 87.34 (calculated as  (100*100)/114.5, ie . Rs 87.34 ) and tax will be Rs 12.66

 

can you pls help me how to achieve the same?