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

[laxev255470a2e]

The issue is due to Magento recalculating VAT when a different country is selected. To fix this, go to Stores > Configuration > Sales > Tax and ensure that Price Display Settings are set to Including Tax for both product and shipping prices. Then, check that your product's tax class is set correctly under Catalog > Products. Make sure your tax zones and rates for both countries are configured correctly under Stores > Tax Zones and Rates. If the problem persists, you may need to override VAT calculation logic in checkout, which may require custom development. Additionally, using tools like notes ai can help track and optimize your tax settings and calculations to avoid such issues.

[zaeweencla491c]

It sounds really frustrating to deal with tax calculations showing incorrect values. Magento 2 can sometimes miscalculate VAT when different countries have their own tax percentages, especially if the tax rules or customer tax classes aren’t fully aligned. I’d recommend double-checking the tax zones, rates, and how they’re linked to product and customer classes. Also make sure the “Calculation Settings” match the way you want Magento to apply VAT. A small mismatch in any of these areas can cause the totals to show up wrong. If you share your current setup, someone here might help spot the exact issue.

[riddhiseob916c]

Your issue arises because Magento is likely set to calculate the fixed tax amount for Country A, then recalculate the gross price for Country B based on the original net price.

• To resolve this, navigate to Stores > Configuration > Sales > Tax > Calculation Settings:
• Change Catalog Prices from Including Tax to Excluding Tax.
• Change Tax Calculation Based On Shipping Origin.

This forces Magento to use the same net price for all calculations, Bazoocam ensuring the final Price Including Tax is correctly calculated for Country B, thus achieving your desired €9.95 total price.

[shali0outlafc7]

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