Wrong tax calculation on shipping on checkout (after delivery address entered)

  • Resolved christoty

    (@christoty)


    1 year, 1 month ago

    Hi there,

    I’m currently facing an issue with the tax calculation on our checkout page for Australian customers. Although I’ve set up a 10% tax rate for products purchased in Australia, there seems to be a discrepancy in the displayed tax amount during checkout, showing approximately ~7%.

    Upon investigating, it appears that the tax is being calculated based on the USD shipping cost, without adjusting for the currency difference when purchasing in Australia. Interestingly, the tax rate for the actual product is correctly calculated at 10%.

    To illustrate, let’s take a product priced at US$150. When converted to Australian dollars at a rate of 1.45, the Australian price is AUD$217.50, with a tax of AUD$21.75, resulting in a total of $239.25. However, the express shipping, priced at US$10 and converted to AUD$14.50, is displaying a tax of AUD$1.00, when it should be AUD$1.45.

    While this may seem like a small issue, it holds significant importance. I would greatly appreciate any insights into why the tax calculation for shipping is handled differently and, more importantly, how we can resolve this problem.

    Thank you for your assistance.

    The page I need help with: [log in to see the link]

Viewing 1 replies (of 1 total)

  • Hi there @christoty ??

    Thanks for reaching out to Woo Support! Let’s troubleshoot this together.

    I’m currently facing an issue with the tax calculation on our checkout page for Australian customers. Although I’ve set up a 10% tax rate for products purchased in Australia, there seems to be a discrepancy in the displayed tax amount during checkout, showing approximately ~7%.

    From what I gather, there seems to be a discrepancy in the displayed tax amount during checkout, for Australian customers. Meanwhile, for US customers, things work as expected, as I understand. Am I getting this?

    To get a clearer picture of what settings are at play, could you please elaborate further on the following:

    • How is multi-currency handled at the site?
    • How are tax settings calculated, using the core WooCommerce functionality, or otherwise?
    • How are shipping costs calculated, using the core WooCommerce functionality, or otherwise?

    Additionally, to get an idea of how your site is configured, could you please share a copy of your site’s System Status, as exemplified here? Once you’ve done that, paste it here in your response.

    Looking forward to hearing from you!

Viewing 1 replies (of 1 total)
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