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Hi currently running into an issue with magento 1.9 tax calculations.

I have a product setup as £10.82 with VAT of 20% to be added. The price including VAT is £12.98.

When 1 product is added to the cart everything is ok but if I add 7 the total should be £90.86 but its showing as:

Subtotal - £75.74 VAT - £15.15 Total - £90.89

Therefore 3p of VAT extra is added. Please advise on how I can fix this.

Thanks!

  • Can you please explain "Therefore 3p of VAT extra is added. Please advise on how I can fix this."? – Nidheesh Sep 27 '16 at 5:19
  • The product price should be £12.98 (inc VAT). £12.98 * 7 = £90.86 but the total is showing as £90.89 which is £0.03 more than what it should be. – lnelson92 Sep 27 '16 at 5:58
  • What is the configuration set at System -> Configuration -> Tax -> Calculation Settings – Nidheesh Sep 27 '16 at 6:40
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Change Tax Calculation Method Based On to Unit Price instead of Total under System > Configuration > Tax. This will give you the tax calculation you'd like based on (£10.82 + (£10.82 * 0.2)) = £12.98 (rounded) * 7 = £90.86 rather than £75.74 + (£75.74 * 0.2) = £90.89.

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