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.

[zorotovipg1183]

you spamm

[fecodoc350a81d]

To fix the issue where the VAT-inclusive price changes based on country, enable Cross Border Trade in Magento. Go to Stores > Configuration > Sales > Tax > Calculation Settings and set Enable Cross Border Trade to Yes. This ensures the final price (€9.95) stays the same regardless of the customer's VAT rate, and only the tax portion adjusts. You can think of it as using an ACFT calculator to keep the final score consistent while the individual components vary.

[sefelop8040f20]

To resolve this issue, you need to enable Cross Border Trade in Magento. This setting ensures that the price including VAT remains fixed across all countries, regardless of their specific tax rates. Go to Stores > Configuration > Sales > Tax > Cross Border Trade and set “Enable Cross Border Trade” to “Yes.” Also, make sure your catalog prices are set to “Including Tax” in the Tax Calculation Settings, and that product prices are displayed including tax click here. With these settings, Magento will keep the gross price consistent—€9.95 in your case—and adjust only the tax and net amounts based on the customer's country.

[slpfrsly4gc37b]

In Magento 2, issues with VAT tax calculation often arise when handling multiple countries with differing VAT rates of machine embroidery. The platform may incorrectly apply a single tax rate across all regions, especially if tax rules, customer groups, or tax zones are not configured precisely. This miscalculation typically stems from improper tax class assignments, incorrect geo-location detection, or a lack of specific rules per country.

[hanive59545113]

To resolve this, ensure that Magento is set to use the correct tax configuration. Go to Stores > Configuration > Sales > Tax, and set Catalog Prices to Including Tax. This will ensure the product prices are stored with VAT included. Also, make sure the Tax Calculation Method Based On is set to Shipping Address or Billing Address, depending on your needs. Verify that the VAT rates for both countries are correctly set under Stores > Tax Zones and Rates. For more detailed guidance, check the Official website documentation. With these settings, the price including VAT should remain consistent across all countries, showing the same amount (€9.95) on the product page and during checkout, regardless of the different VAT rates.