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:

Settings for UK VAT Tax rate at 20% in Craft Commerce


Try unticking the This tax is already included in the taxable subject checkbox.

I would imagine that with this checked, Commerce assumes that the prices entered for products already have tax applied, so the tax amount is calculated on that basis, hence it being 1/6 of the total rather than 1/5.

  • Unfortunately when I do that Steve the cart.totalPrice shows as £9,600 when I want it to show as £8,000. Any other avenues you'd recommend I check? I imagine I could change the price to be £6,400 but would like to avoid that if possible. Jan 12 '18 at 19:10
  • If you untick the box you'll need to make sure all prices that you put in for products are excluding VAT. Is the £8000 supposed to be including or excluding VAT? Jan 12 '18 at 19:14
  • Ok understood Steve. So all products inside commerce will need to be listed minus their 20% Vat. Jan 12 '18 at 21:50

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