I am having Magento ver. with Multi-Website and Multi-currency website, We are facing our issue of Tax being not calculated correctly in front-end and in the back-end. See my below configuration setting in admin side under

System >> Configuration >> Sales >> Tax

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I am having one product text_product_03 which have selling price and product price 80 GBP and 100 GBP respectively, please see the snap below, as you seen instead of showing 20.00 GBP it shows 16.67 GBP, and due to that, the order calculation gets wrong in front-end.

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I have also checked the same issue there in Magento Fresh version to could you please help me out what was wrong here? Do you have any suggestion or solutions which will help me out to solve this issue, If yes please share with me so I will check that and will solve it out.



I don't think you understand how VAT works. You've configured your store to have prices including VAT, and set VAT to 20%. If your product is £100 including VAT then the VAT portion of that £100 is £16.67. You can work this out manually yourself. The Ex VAT price is £100/1.2 = £83.33, and the VAT is £100-£83.33 = £16.67.

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