Tax Calculation in Magento 1 | Should be 20% | Not 20%

Question

We are exporting Magento orders to another platform and have noticed what seems to be a major issue in the tax calculation; hoping you guys can help..

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In the example above; we have a shipping fee £6.95 (inc tax), a discount £5.80 and a product sales price of £116 (inc tax).

Total Inc. Tax is correct: (£116 + £6.95) - (£5.80) = £117.15.

The Tax charged however is showing as £19.53 which I just can't replicate..

I've tried:

• 20% of £116 = £23.2
• 20% of £116 - £5.80 = £22.04

No permutation seems to deliver amount of tax charged that Magento is stating: £19.53

Can anyone shed some light on this for me?

Thanks in advance..

Answer 1

These figures are tax inclusive:

So convert them to tax exclusive by dividing by 1.2.

96.667
5.792
-4.833

Now that adds up to 97.625. 20% of that is 19.525 which needs to be rounded up to 19.53. The government wants all the half pence amounts!

The original tax inclusive amounts added to 117.15 so subtract the tax and you get a pre-tax amount of 97.62.