Tax calculated wrongly | WordPress.org

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Hi @jessiemart

I understand your concern about the tax calculation mismatch. However, there seems to be a small misunderstanding regarding how tax calculations work.

When you set the product price as Rs.350 including tax, the system calculates the tax amount based on the pre-tax price. In this case, the pre-tax price is Rs.296.61 (350/1.18), and the tax amount is Rs.53.39 (296.61 x 18%), which is why you see Rs.53.39 at checkout.

When you set the product price as Rs.350 excluding tax, the tax is calculated on the full product price, hence you see Rs.63 (350 x 18%) at checkout.

More info: https://github.com/woocommerce/woocommerce/wiki/How-Taxes-Work-in-WooCommerce

I hope this clarifies the tax calculation process. If you have any more questions, feel free to ask.

Yes. You are right Shameem. This is my misunderstanding about Tax calculation. Thank you for your quick response.

Hello @jessiemart,

Glad to know that we were able to help. I will mark this thread as resolved. Should you have further inquiries, kindly create a new topic here.

Meanwhile, if it isn’t too much to ask for – would you mind leaving us a review here? It only takes a couple of minutes but helps us tremendously. It would mean so much to us and would go a long way.

Thanks!

 

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