I'm encountering a problem with how to show UK style VAT tax on an item. I've created a tax rate called VAT at 20% that is included in the taxable subject.
However when this tax is computed on say £8,000 rather than showing the tax as 20% or 1/5th = £1,600 it shows it as 1/6th = £1,333.33. I can't figure out why the tax isn't applying properly. Settings below: