TAX VAT CHECKOUT wrong calculation

You have to select “Yes, my prices include VAT” (sorry, translated to englisch from another language).
In your case, Woocommerce calculates the VAT from 80 AED, which is 76,109 AED, equals a VAT of 3,81 AED.

Dear @chris2201 yes my prices are include VAT you are right and 80AED should be RSP+vat but if we calculate 5% of 45 and 35 its still wrong and 3.81 is not the right number.

5% for 45 = 2.25

5% for 35 = 1.75 so total is 4 right?

and 5% for 80 is 4 so WooCommerce should show 4 in the invoice and checkout. correct me please if im wrong.

You’re calculating it wrong. If the INCLUDING TAX price is 45 then it is:

42.86 + 5% (2.14) = 45

The 45 already has the 5% applied to it – so 5% of 45 would give you an additional 5% of the 2.14 that was already added!

agree! my bad, i update it and all good now but problem with decimals on shipping. My shipping rate is 19AED taxable so it should be 18.10+5% VAT but on woocommerce its showing now 19.01 with decimals why?https://prnt.sc/sxtVA3RJAyPU and this is on frontend: https://prnt.sc/6XeYpnR6otzQ

Hi @marchajj – 19.01 is correct if you start with 18.10 and then add 5% to it. If you want 19.00 even, you should use the un-rounded amount, and let WooCommerce do the rounding after adding the tax.

Here’s the calculation for how to work backwards from your final amount, so that we can see the un-rounded amount.

19/1.05 = 18.0952381

In this case, use the number down to 3 decimals: 18.095 – if you enter that as your shipping cost, the total after 5% tax will be 19.00.

I hope that helps! For more context, have a look at the How Taxes Work in WooCommerce documentation.

• This reply was modified 1 month, 1 week ago by EastOfWest a11n.

Thanks a million @eastofwest for the great details and info. much appreciate it!