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

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

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!

 
2 REPLIES 2

Re: Magento 2 VAT tax calculation with countries with different tax percentage is calculated incorre

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".

Founder at https://agency418.com

Re: Magento 2 VAT tax calculation with countries with different tax percentage is calculated incorre

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