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I have set up my products so that their price is inclusive of Tax.

However when I get to the Checkout page, the tax is being added to the Product Price. Where really it should only be there as a summary.

Anyone know how to fix this?

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It appears to be a support question regarding magentocommerce.com ... ServerFault or SuperUser seems more appropriate. –  Godeke Oct 8 '09 at 16:14
Almost any customization of Magento requires writing code of some kind, so it belongs here as much as anywhere else. –  Alan Storm Oct 12 '09 at 18:36
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closed as off topic by Lix, Bill the Lizard May 3 '12 at 13:17


5 Answers

You need to have the correct settings in your configuration.

Look under System/Configuration/Sales/Tax/Calculation

There are two important choices here

  • Catalog prices include tax
  • Shipping prices include tax

These should both be set to the same value.

If you write your product prices including taxes, then these options should be set to yes.

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This is the correct answer, don't go about hacking the code, it's just a config issue. –  Paolo Dec 30 '09 at 8:55
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From a high level the answer is to not setup your prices inclusive of tax. The Magento system expects you to setup prices without tax. All calculations in the system will be based on that.

If you want prices to display with tax, you should override and/or create new Blocks and phtml templates that display price information. You want to change what is shown to the user, and not change what is used in system calculations.

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Magento allows you to write prices in both ways. –  Peter Lindqvist Dec 4 '09 at 14:54
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To set all your prices as a figure that excludes TAX is completely unworkable and I don't understand why it has been suggested.

If I have a book in my UK store and a customer from the UK buys it, then there is no VAT on it. If someone from Denmark buys it, then the TAX rate is 10%.

You cannot have the product set to the amount excluding the TAX as it just wouldn't work. I would set the price say at £10 and expect the Tax Rules etc. to realise that a UK customers order would show zero tax as part of the £10 but the customers order from Denmark would show a tax of £0.91 but the Grand Total should still be £10 in all cases.

Or have I missed the point with this?

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You'll need to find the appropriate location in the price.phtml that displays the price and use a similar line of code to display JUST the product price without any tax.


<?php echo Mage::helper('core')->currency($_price,true,false) ?>
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Go into your tax rules and remove them all. If there are no tax rules, it can't charge any tax.

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