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I am running the latest WordPress with the latest WooCommerce, as of this writing.

I have one standard tax rule setup for 20%. This is UK VAT.

I have a product setup at £350. 20% of 350 should be 280. 

20 x 350 / 100 = 70

However, on my product page AND checkout basket etc, the amount comes to: 291.67 (ex Tax). This should be 280. This is really wrong! So I'm not sure it's related to how I am coding the output of the product page, since I haven't touched the checkout template at all.

I am not sure if I have set something up incorrectly? Why am I getting such an odd number.

Some rules I have setup:

  • Yes, I will enter prices inclusive of tax.
  • Display prices during cart/checkout: Excluding tax.
  • Shipping tax class: Shipping tax class based on cart items.

I really cannot work this one out.

The tax setup:

enter image description here

The tax on the checkout:

enter image description here

Any help greatly appreciated!

Thanks, Mikey

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Michael Giovanni Pumo
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1 Answers1

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I think its correct, its not:

ExVAT = £350 - ((£350 / 100) * 20) = £280

as that's calculating off the price that already includes the VAT, rather its;

 20% / 100 = 0.2
 0.2 + 1   = 1.2

 £350 / 1.2 = £291.67
Alex K.
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  • Sorry, I don't fully follow. Is this to do with a setting in WooCommerce, or programming error in the plugin? I want the VAT to be calculated FROM the price given. 350 is its price. 280 should be the price without VAT tax. – Michael Giovanni Pumo Mar 05 '13 at 13:09
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    Well £350 ex VAT is £291.67 not £280; I.e. £280 + 20% is not £350 (its £336 - (280 + 20 * (280 / 100)) but £291.67 + 20% is £350 – Alex K. Mar 05 '13 at 13:15
  • Right, that makes sense. But why would it work this way? Do you know of a way to adjust woocommerce settings so that they calculate tax from the final amount and not as an addition to a price without tax? – Michael Giovanni Pumo Mar 05 '13 at 14:26
  • 'Fraid I don't know anything about that package – Alex K. Mar 05 '13 at 16:12
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    If VAT is 20% over £280, then the total is £336. If VAT is 25% over £280, then total is £350. You are calculating percentages wrong and WooCommerce is not the one at fault! – banjoSas Sep 23 '13 at 16:12
  • It's absolutely not correct. There's countless of issues reported on Github that WooCommerce tax calculations are wrong. They even confirm it. While i don't know the exact fix, check out these issues for possible solutions. https://github.com/woocommerce/woocommerce/issues/25347 https://github.com/woocommerce/woocommerce/issues/24619 https://github.com/woocommerce/woocommerce/issues/24619 – Sillo Mar 17 '22 at 08:19