German taxes wrong 16% instead of 19%

Viewing 6 replies - 1 through 6 (of 6 total)
  • Thread Starter Jan

    (@krugmedien)

    This is the behaviour I want:
    https://docs.woocommerce.com/document/setting-up-taxes-in-woocommerce/#section-21
    (see “Why do prices change when “Prices Include Tax”?”)

    I want to enter a tax inclusive price of 1,00 €.
    Visitors from Germany (19% tax rate) should see this:
    price = 0,81 €
    tax = 0,19 €
    total = 1,00 €

    Instead of this:
    price = 0,84 €
    tax = 0,16 €
    total = 1,00 €

    Does anyone know how to make this happen? :-/
    Thanks a lot!

    Hi there,
    I just found your post here and on stackoverflow. Right now Iam working on a new WC installation and wanted to check this.

    Yes, I can see the same problem on the following versions:

    – current version (3.8.1)
    – version 3.6.5
    – version 3.4.3

    On another shop which uses “No, I will enter prices exclusive of tax”, the calculation is correct. (e.g.1,19€)

    Thread Starter Jan

    (@krugmedien)

    Hi lws-mo,

    thanks for your reply!

    When I select “No, I will enter prices exclusive of tax” and I change the price to 0,81 € (without taxes) the calculations are also wrong:
    Subtotal 0,96 €
    Total 0,96 €
    incl. 19% VAT 0,15 €

    I want the product to cost 1 € and show 19% taxes (0,19 €).
    Is that possible with WooCommerce?

    Hi krugmedien,

    sorry I just commented to say that I can see the same calculation problem you mentioned. I found no solution even after editing some settings, so I cannot say exactly if it is possible. (or also if that is a bug or not)

    As mentioned I also checked some older WC versions, and created an 1€ product here as well. I can see the same calculation already in version 3.4.3.

    I agree with you, that when 19% tax is active, that we should see 0,19 € tax and not 0,16 € on a 1€ product.

    So I also hope that someone from WC will see this and check, and hopefully tell us whats up here. Or if maybe we overlooked something.

    Luminus Alabi

    (@luminus)

    Automattic Happiness Engineer

    Hi @krugmedien @lws-mo,

    The taxes are calculating correctly. The formula for taxes when they are included in the sale price is different. It is not a matter of straight deduction of 19% from the total figure.

    You can learn more about this here – https://www.accountingcoach.com/blog/calculate-sales-tax

    There’s also a handy sales tax calculator here – https://gstcalc.com.au/. It was made for the Australian market, but luckily it allows you to specify your preferred tax percentages.

    Here’s a screenshot from that site showing the breakdown of how much 19% in taxes comes to when included in a €1 sales price and what the actual cost comes to when tax is deducted:

    Full Size: https://d.pr/i/YeFx9P

    This one shows you what 19% tax added on top of € 0.81 comes to:

    Full Size: https://d.pr/i/3bjNpc

    Feel free to run the numbers yourself. I’d also recommend speaking to a good accountant that understands sales taxes and how they work.

    I’ll go ahead and mark this as resolved now.

    Thanks @luminus for your input, will take a look!

    Have a nice day!

Viewing 6 replies - 1 through 6 (of 6 total)
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