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magentoe-commercemagento-1.5

Magento vat applied incorrectly


I'm having some problems with prices that are showing up wrongly. I have set up magento so that the prices i give to products are Including VAT. Yet it seems to just ignore the setting since even changing it won't change the result. I've made some screenshots of the problem:

Anyone has any idea what could be the problem? thank you!


Solution

  • I'm not into the tax rules in your country, but probably you have to change the calculation to be based on "shipping origin" and define the origin under "system > configuration > shipping settings > origin".

    Calculation based on billing address requires an address set - which is probably not the case in the frontend (unless as a logged in customer). However, the tax should be correctly in the review step of the checkout.