WooCommerce – Tax Calculated Incorrectly?

  • I am running the latest WordPress with the latest WooCommerce, as of this writing.

    I have one standard tax rule setup for 20%. This is UK VAT.

    I have a product setup at ￡350. 20% of 350 should be 280.

    (20 x 350) / 100 = 70

    However, on my product page AND checkout basket etc, the amount comes to: 291.67 (ex Tax). This should be 280. This is really wrong! So I’m not sure it’s related to how I am coding the output of the product page, since I haven’t touched the checkout template at all.

    I am not sure if I have set something up incorrectly? Why am I getting such an odd number.

    Some rules I have setup:

    Yes, I will enter prices inclusive of tax.
    Display prices during cart/checkout: Excluding tax.
    Shipping tax class: Shipping tax class based on cart items.

    I really cannot work this one out. Am I going mad?

    Thanks,
    Michael.

Viewing 3 replies - 1 through 3 (of 3 total)

  • Hi Michael,

    Did you ever get a solution to this one.

    I have the same issue

    Cart Subtotal ￡39.99 (ADDED TO WOOCOMMERCE WITH VAT)
    Shipping

    Free Shipping

    Order Total ￡39.99 (Includes ￡6.67 VAT)

    the vat should be 39.99 / 100 * 20 = ￡7.998 not ￡6.67!

    On the latest version of WooCommerce (as of today 29/01/2014) we added 2 items (of ￡250) on my girlfriend’s website that totaled to ￡500 (including VAT) it said the VAT component was ￡87.50 but that’s wrong 20% of ￡500 is ￡100. I think the answer is simple, the program is ignoring the values stored in the VAT table and must have a hard-coded 17.5% value.
    ￡87.50 is 17.5% the old VAT value in the UK (and other countries) for a long time though sadly not now… If nobody else has fixed this then I’ll look at the code.

    I take back everything. I now realise that it is calculating correctly, just not in the manner that I expected. When you put in the price of the product, it already includes VAT so for an item in the shop at ￡250
    It means its gross price before VAT was ￡208.33 so 20% of that is ￡41.66. So gross plus VAT = ￡249.996 (a little rounding). I was expecting you enter the gross price of the item then would show the VAT and then add the VAT on top. It does clearly say under the figure (includes ￡41.66 VAT).
    So I thought was my expectation unfair? I guess a lot of people were thinking it was unclear hence lots of queries on the net. How does the biggest and best eCommerce site on the web do it? Amazon of course is very clear.
    Total before VAT: ￡208.33
    VAT: ￡41.66
    ——-
    Total: ￡250.00

Viewing 3 replies - 1 through 3 (of 3 total)
  • The topic ‘WooCommerce – Tax Calculated Incorrectly?’ is closed to new replies.