Magento applies tax on product prices that already including tax

magento cart
Fred K picture Fred K · Apr 16, 2013 · Viewed 9.3k times · Source

I've added products prices with tax included (in the field Price [EUR] [ Including Tax]) Now when I put a product in the cart, Magento applies the tax to price that already including the tax!

Example: if the product has "Price [EUR] [ Including Tax]"=100€ in the cart I have:

Product price € 100

Sub total € 100

Taxes € 20

Totale €120 (but the correct price including taxes is 100€!)

instead I want this:

Product price € 100

Sub totale € 80

Taxes € 20

Total €100

I'v tried all the settings and I'm going mad! is there a solution?

Answer

georgelx picture georgelx · Nov 27, 2013

I will repost idophir's comment, that fixed my issue that led me to this question. I wasted hours looking at tax settings and tax rules, to finally find my culprit in shipping origin settings:

Check out the link below. It says that the shipping origin country (System > Configuration > Sales > Shipping Settings > Origin) affects the the way the price is displayed in the cart. Strange.. http://www.magentocommerce.com/boards/viewthread/78069/

Related questions

Magento - How to get cart items total in header.phtml

I am using Magento eCommerce and I have modified my header.phtml via the Blank template. Code, this is my code but it shows blank. <?php $cartQty = $this->getSummaryCount() ?> <?php if ($cartQty>0): ?> <?php …

Read More
Magento recalculate cart total in observer

I have an observer that removes items from the cart if they are out of stock (i.e. customer returns to their cart ofter x time, and an item in the cart has gone out of stock), and shows a …

Read More
Magento : how to change item price when adding it into the cart

I would like to be able to change an item price programmatically (not through catalog or cart rules) when I add it into the cart. The following answer Programmatically add product to cart with price change shows how to do …

Read More