I have set up a tax rate of 21% (Belgian Tax). This tax rate applies to all products (Taxable Goods) through the needed Tax Rule.
Let's take a product with a price of 6.82€ (tax included). Magento shows "[Inc. Tax €1.18]" on the Price tab for this product.
This is completely wrong: 6.82€ * 0.21 = 1.4322€ (-> compared to 1.18€)
As a result, the tax information on the shopping cart and on invoices are totally wrong.
I have this set-up in System > Configuration > Tax:
- Tax Calculation Method Based On: Total
- Tax Calculation Based On: Shipping Origin
- Catalog Prices: Including Tax
- Shipping Prices: Including Tax
- Apply Customer Tax: Before Discount
- Apply Discount On Prices: Excluding Tax
- Apply Tax On: Custom price if available
I can't find what is going wrong. Any help would be fully appreciated.