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I wonder if there is a bug with taxes in magento. For example: I set inside configuration menu>Sales>Tax > all to Including Tax. Fixed Product Taxes are not active.

Then I go to make a new product and set the price to 100, under the price it says "Inc. Tax" so my price 100 should be inc tax, correct?

Then I set Tax Class for my product which is 25%.

I flush the cache

Then I go to the store, but the price that is displaying is 125, not 100 as it should including tax. How does that come? Why does Magento add another 25% on the already taxed product?

Is it possible that the text "Inc. Tax" under price when you create a product should be ex. Tax instead? Cause when I type the ex.Tax price inside there which is 75 (100-25%=75) then the price in the store is correct, 100 inc. tax.

So, is it me or Magento? According statistics, there's a pretty big chance it's me...

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So there are some settings under Configuration->Sales->Tax->Price Display Settings. Here you should be able to set options to show prices in the front end including or excluding tax.

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