I have added a new rule 5%(on product and shipping) for customers who are UAE.

Please find the below screenshots

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Tax Rule:

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And Tax settings:

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Note: All products in the site Tax class is: Shipping

Frontend issue is:

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Product price is AED 1400

Product 5% tax is AED 70

Shipping price is AED 22.20

Shipping 5% tax is AED 1.11

Total should be AED 1493.31

But tax is adding double and result is AED 1,564.42

Please help me how to fix this issue


2 Answers 2


First you need to create tax classes and assign to products by following link :


than you can set tax for shipping price using below configuration :

System > Configuration > Sales > Tax > calculation settings

  • yes i did the same but here iam getting a issue prnt.sc/hsfpyf tax is being added twice
    – Raghu
    Dec 26, 2017 at 13:19
  • @Raghu please edit the question with the proper issue , also check link once..... Dec 26, 2017 at 13:23
  • ok sure i will edit the question with full details thanks
    – Raghu
    Dec 26, 2017 at 13:29
  • hi @Baby in Magento i have edited the question, can you please check this
    – Raghu
    Dec 27, 2017 at 6:47
  • @Raghu did you checked this link : stackoverflow.com/questions/12933571/… ? Dec 27, 2017 at 6:48

Remove var/cache , var/session directory's and run browser in incognito mode. And also you can reindex your data from admin menu I think it will help to you.

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