Magento applies tax on product prices that already include tax

Question

I have added prices for products with tax included (in the Price [EUR] field [Tax included]) Now, when I put the product in the basket, Magento applies tax to the price, which already includes tax!

Example: if a product has "Price [EUR] [Tax included]" = 100 € in a basket, I have:

Product price € 100

Total € 100

Taxes € 20

Total € 120 (but the correct price, including taxes, is 100 euros!)

instead I want this:

Product price € 100

Total of € 80

Taxes € 20

Total € 100

I tried all the settings and I lost my mind! is there any solution

Answer 1

I will post an idophir comment that fixed my issue that led me to this question. I wasted hours looking at the tax settings and tax rules to finally find my culprit in the delivery origin settings:

Check out the link below. It says that the country of origin of delivery (System> Configuration> Sales> Delivery settings> Origin) affects the way the price is displayed in the basket. Strange .. http://www.magentocommerce.com/boards/viewthread/78069/

Answer 2

Go to System-> Configuration-> Sales-> Taxes-> Calculation

and find Catalog Prices. Set the switch to yes, then Magento assumes that tax is included in the catalog price.

Also check these options in the repository configuration area, and not just in the default configuration.

Answer 3

I had the same problem and I checked soutions and went through this thread. Right now I got a solution to my problem, so I’m telling you about it. In my case, I previously selected “Country Default” as the United Kingdom in the “Default Destination” window, and I was signed out of an account with an address other than the United Kingdom. So everything was in order, I tried each option, and the tax was not updated on the products and purchases pages. When I logged out and found that it was working;) Then I solved the problem. Therefore, if you have a default country for calculating taxes, check taxes with or without it. Hope it works for you. And sorry that I'm late :)

Answer 4

Make sure that the country of origin is correctly specified in the Configuration> Sales> Delivery Settings section.

Answer 5

when you go to the TAX calculation section (Thats System-> Configuration-> Sales-> Taxes-> Calculation), you will find “catalog prices” that you can configure whether you want to include tax price or not.