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:
20% of 84.99 is not 14.17
Any ideas anyone?
there is no problem there 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
Hi..I have a similar query to calculate tax
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?