Magento 2 VAT tax calculation with countries with different tax percentage is calculated incorrectly

[infotieron]

I have been using Magento for about 7 years and I am pretty familiar with the platform.

I recently added a new website to my installation that requires general VAT calculations.

Here is the issue:

• Country A: 20% VAT tax (Country for Default Tax Destination Calculation (Magento setting))

• Country B: 25% VAT tax

• Product price is €9.95 (including VAT tax). The product price shows up correctly on the product page.

Product price shows correctly if Country A is selected during checkout:

- Price Including VAT: €9.95, Price Excluding VAT: €9.29, VAT: €1.66

When country B is selected during checkout, the price, including taxes, changes!:

- Price including VAT: €10.36, Price excluding VAT €8.29, VAT: €2.07

ISSUE: The price, including VAT, should not change when selecting Country B during checkout. It should be €9.95 for every country independent of their VAT tax (this is the price that shows on the product detail page)!!!

Any idea how to resolve this?

Thanks for any help!

[toniagency82ed]

That's configurable. This is a common issue with EU taxes.

The way you described you want it to work, just go to Stores Configuration > Sales > Tax and set "Enable Cross Border Trade" to "Yes".

[infotieron]

Awesome! Thanks a lot for the answer. That worked.

[xeyine25525ae5]

Enable "Catalog Prices Include Tax" under Stores > Configuration > Sales > Tax > Calculation Settings, set "Apply Tax After Discount" to "No," and enable "Enable Cross-Border Trade" under Price Display Settings. Reindex and clear the cache to apply changes. If you're also troubleshooting app-related issues, you might come across resources like SpotifyPremiumAPK for additional testing, but always ensure you follow best practices for stability.

[javage278529e4]

To resolve the issue, set Catalog Prices to Including Tax in Stores > Configuration > Sales > Tax. Also, ensure Apply Tax On is set to Final Price, and verify tax rules for both countries are correctly configured. If you're looking for a break while troubleshooting, check out zoro.to for some entertainment. Clear the cache and test the checkout process. This will keep the price, including VAT, consistent at €9.95 across all countries.