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I have noticed that the tax wasn't working properly in my store, and set up a tax rule in my store. After I applied that rule to my products the tax is added to the price of the product, while I entered my prices including tax.

How can I apply the tax rate correctly?

EDIT

Display Product Prices In Catalog is set to yes System > Configuration > Sales > Shipping Settings > Origin is also set to the correct country

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Have you updated the setting in Configuration > Sales > Tax > Calculation Settings > Catalog Prices Set this to Including Tax

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