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My french store (a testing site) is calculating the wrong tax in shopping cart, but right in backend panel, in Manage tax rate, the french store rate is set to 20, for example, if the price is 139, the right tax should be 23.17 (my production site is showing 23.17 as same as i see in backend)

tax

The shopping cart should show the tax amount as same as i see in backend (23.17 but not 27.8), anyone know what is the problem?

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The problem here is definitely configuration related.

Basically right now your tax is calculated based on the product price: 139 * 20 /100 = 27.8 and what you want is the other way around.

I suggest you look at System > Configuration > Tax > Calculation Settings > Catalog Prices and switch this value to Including Prices.

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  • so strange, the rate of UAT site and PRD site is the same, but the UAT cal tax as 139 * 20/100, while PRD site cal tax as 139 / 1.2
    – hkguile
    Commented Jan 19, 2016 at 9:30
  • i think the 139 is already included the tax, so the 139 should not be used to cal tax , 139 / 1.2 * 20% should be right.
    – hkguile
    Commented Jan 20, 2016 at 9:27

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