Inclusive tax is not working properly

Hi @owadud655,

I found that the inclusive tax is reducing the price. Kindly check and fix it quickly.

Can you share more details about this, please? Did you have your products set up and working properly before, and any recent updates changed this to not working?

Please keep in mind the tax settings may alter the price of your products depending on how you set it up. The “Prices entered with tax” option is perhaps the most important setting when you manage taxes in your store. It determines how you enter your product prices. There are 2 options to select from:

• Yes, I will enter prices inclusive of tax – enter all product prices including your store’s base tax rate.
• No, I will enter prices exclusive of tax – you should then enter product prices without tax.

For example, let’s say want a product to cost ￡9.99 including taxes, your store is UK-based and the tax rate is 20%.

• If you select Yes, I will enter prices inclusive of tax, you would enter ￡9.99 as the total product price. WooCommere will work backwards from that total and calculate that it includes the base product price of ￡8.325 and the tax of ￡1.665 to display, automatically rounded. 
• If you select No, I will enter prices exclusive of tax but want the same total price, you would enter ￡8.325 as the product price. WooCommerce then adds 20% on top and offers the same rounded price of ￡9.99.

Click here to learn more about how taxes are calculated in WooCommerce.

I hope this clarifies things. If your issue is not settings related, but a problem that started for you recently, please share more details, include screenshots if possible (you can use Snipboard.io to do that).

Thanks!
-OP

• This reply was modified 2 months, 1 week ago by omarfpg a11n.

“If you select?Yes, I will enter prices inclusive of tax, you would enter ￡9.99 as the total product price. WooCommere will work backwards from that total and calculate that it includes the base product price of ￡8.325 and the tax of ￡1.665 to display, automatically rounded”

Previously does it work that way or it is related to any update?

Hi @owadud655

WooCommerce calculates taxes this way from the beginning and is not related to any recent updates. When you select “Yes, I will enter prices inclusive of tax,” WooCommerce will always work backwards from the total product price you enter to calculate the base product price and the tax.

This is a standard feature of WooCommerce and is designed to give you flexibility in how you set up your store’s tax settings. It allows you to choose whether to enter product prices inclusive or exclusive of tax based on your business needs and your location’s tax regulations.

More info on how tax works in WooCommerce can be found here: https://github.com/woocommerce/woocommerce/wiki/How-Taxes-Work-in-WooCommerce

If you’re experiencing issues with this feature, it could be due to a settings issue or a conflict with another plugin or theme. Please provide more details or a video of the issue so we can assist you further.

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Looking forward to hearing from you!