Tax added to shipping fees when 'Enter Prices Inclusive of Tax' is set to yes

There is an option 'Enter Prices Inclusive of Tax' as if set the product price is calculated as inclusive tax.

This works fine, but the shipping fees is still exclusive tax. So if I set the 'Apply Tax To Shipping Fees' option, the tax is added to the total!

I my mind the shipping fee should be calculated as inclusive tax if 'Enter Prices Inclusive of Tax' AND 'Apply Tax To Shipping Fees' was set.

  • Jolandak
    • Site Builder, Child of Zeus

    I agree with Espen. The cart should sum up, product price (TAX included), TAX (of product), Shipping costs.
    For example:

    Product: € 10,00
    Tax: € 1,60

    Shipping: € 7,50

    Total: € 17,50

    I would lik to add to this that the total amount comes out a little wrong too. (See image)

    I have 2 products in my cart, total € 80,00 (TAX included).

    After calculating TAX, the total is set to € 79,99. It's just a cent but it looks weird.

    Kind regards,
    Jolanda

  • Jolandak
    • Site Builder, Child of Zeus

    Adding to my last post:

    In my case I have product pricing set to: Enter Prices Inclusive of Tax. Because these are the prices that are also used in stores. So they need to be the same, and I don't want my customers to get confused. That's why I need my shop to show prices TAX included.

    Shipping costs however are calculated without TAX.

    I've been looking around and tried to find out how other shops (here in Holland) do this. I've noticed that they don't use TAX prices in their shopping carts at all. Just total amount + shipping.

    For me this would be a good solution. I'm thinking that I'm making it more complicated then I have to. Also considering the fact that it makes my "Getting iDEAL to work" issue complicated.

    After a customer places an order I always send an invoice along with the order in which I can put the TAX.

    .....

  • Aaron
    • CTO

    Ok, so all of Tim's screenshots are expected behavior.
    1. Shipping is not shown as tax inclusive, so 122 would be the total.
    2. Is correct as the buyer address either hasn't been entered yet or tax rules are set to not tax for that address
    3. Same as #2

    @Espen, what I gather is you are concerned that the shipping line item is not also shown as tax inclusive? It wasn't designed to be. The tax inclusive option was designed for entering and displaying products with tax included.

  • espsjurs
    • The Incredible Code Injector

    Ok Aaron,

    My concern is that the customer gets confused when the order total changing during the checkout process.

    #2 explains it all - until the customer comes to final checkout.

    I think the best solution would be to add the shipping fee after the customer has entered his shipping address. Then all the information is available and the calculation can be done correctly with all prices inclusive or exclusive taxes.

    I suggest a new option called 'Add shipping fee to shopping cart?'. If checked it will work as now, but if not you add a line in shopping cart saying 'Shipping fee can/will be added!'. Then the final confirm page can show the correct shipping fee.

    Espen

  • espsjurs
    • The Incredible Code Injector

    Hi Aaron,

    I have done a test in a brand new test environment. Latest WP, MP beta, and latest Frame/Grid-market.

    There is still a problem with the tax.. Tax still added to the total if included.

    With no tax to shipping all is ok.

    BUT, there also might be a problem with 'Base Country'. I have selected 'Norway' as base country in 'Location Settings', and selected 'Norway' only in 'Target Countries'. The rate is 'Flat' and set to 125 in 'In Country' and to 250 in 'International'.
    The Checkout displays 250, but should be 125..

  • Aaron
    • CTO

    Hmmm, both cart calculations are perfectly correct. It doesn't seem to be displaying the shipping line as inclusive though, i'll take a look at it.

    As far as the shipping rate, it's got to be calculating based on a different country that you entered on a previous checkout. Go to the next step and continue past it changing the county to Norway.

  • espsjurs
    • The Incredible Code Injector

    As you can see from the 'Tax Setting' I have set the 'Tax orders outside base country' to 'no', and tax is calculated. That points me to that the tax calculation assume me to have location in Norway, probably based on the 'Base country' settings.. Why should then the shipping calculation assume else?

  • espsjurs
    • The Incredible Code Injector

    Regarding the shipping fee, in both my tests the shipping fee displays correct (if I dont care of location). The correct tax in the first case is 75 (25+50), the tax in second case is correct as it is (25).

    The chart total should be the same (375) in both cases.

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