Tax calculated wrongly

Hi @jessiemart

I understand your concern about the tax calculation mismatch. However, there seems to be a small misunderstanding regarding how tax calculations work.

When you set the product price as Rs.350 including tax, the system calculates the tax amount based on the pre-tax price. In this case, the pre-tax price is Rs.296.61 (350/1.18), and the tax amount is Rs.53.39 (296.61 x 18%), which is why you see Rs.53.39 at checkout.

When you set the product price as Rs.350 excluding tax, the tax is calculated on the full product price, hence you see Rs.63 (350 x 18%) at checkout.

More info: https://github.com/woocommerce/woocommerce/wiki/How-Taxes-Work-in-WooCommerce

I hope this clarifies the tax calculation process. If you have any more questions, feel free to ask.

Yes. You are right Shameem. This is my misunderstanding about Tax calculation. Thank you for your quick response.

Hello @jessiemart,

Glad to know that we were able to help.?I will mark this thread as resolved. Should you have further inquiries, kindly?create a new topic here.

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