Not calculating the right 21% tax on woocommerce cart/checkout

I want the prices to show in the store and cart/checkout included VAT.
for example you see a product for €79,95. (product is included VAT)

cart/checkout:
€79,95 (inc VAT, €16.79) (this is what you should see)

why isn’t it calculating right, i looked over, over and over again.

https://www.creationinternetsite.com/e-commerce/woocommerce-tax-calculation-incorrect-wrong/

This is what i want it to do on the cart/checkout, he is asking 20euro and i don’t even know if it will work.

The tax calculation is not incorrect. Your prices INCLUDE tax. When you calculate tax from prices inclusive of tax you need to remember the value already includes tax, so the following calculation is used:

79.95-(79.95/1.21)

This is 13.88. If you want to work this out forwards, take off that tax (79.95 – 13.88) which is 66.07 and work it out forwards:

66.07 * 1.21 = 79.9447

Boom.

I understand you. When i do the prices excluded tax in the shop, i get the cart/checkout:
Total €79,95 (inc VAT, €16.79)

The thing is, i want to show all the products included tax. So on checkout, they dont see that tax need to be included. And if they calculate on checkout, they calculate 21 percent of the products is the tax. Otherwise my customers wont understand it. What is the best way to do then? Do i need to edit something in woocommerce. Thank you very much.

This comes up every so often.

Customer should know that the 21% is applied to the cost of the item before tax is added.

Seller receives 66.07

Government receives 21% of 66.07 = 13.88

Customer pays 66.07 + 13.88 = 79.95

Customer sees 79.95

This is how tax works. I suggest you don’t pay the 20 euros or edit anything in WooCommerce since no fix is required.

In my country i have to show 21% on the cart/checkout, i can’t do nothing about that. So what is did is:

Enabled: No, I will enter prices exclusive of tax
Display Prices in the Shop: Inlcuding tax
Display Prices During Cart and Checkout: Including tax

Now i just need to remove the “(incl. VAT)” on the end of the product in the cart.

Try this in your custom css:

.tax_label, .cart-subtotal small {display:none}

If your theme does not have a setting where you can enter custom css, you can use a plugin like this one:
https://www.ads-software.com/plugins/simple-custom-css/

This works for my theme. If it doesn’t work for you please post the url for your site.

Thanks lorro, that worked!

But im still not that happy about the tax calculations what i mentioned earlier.
I just want to put a price for 10 euro on the store. when someone adds it to the cart, he/she will see 10 euro in the cart and in checkout also will see 10 euro as well. He/she will see 10 euro (inc. 2,10 tax) because tax is 21%.

I hope someone is able to guide me to get this. much appreciated thanks!

Buyer buys a 10 euro product included tax
in cart/checkout, 10 euro included tax (2,10 tax)
21 percent (2,10 euro) is calculated in reports.
So i can give this to my accountant with ease.

This is exactly how i need it to be. Maybe i am overlooking something in settings..

https://i.imgur.com/i8e3oD6.jpg
Product is 29,95 euro

subtotal is 24,75 euro without tax
verzendkosten: 4,95 (no tax calculation over here)
btw 21% : 5.20 euro (math: 21% of euro 24,75= 5,20 euro)
total: 34,90 euro

btw means tax
verzendkosten means shipping cost

thank you!

Buyer buys a 10 euro product included tax
in cart/checkout, 10 euro included tax (2,10 tax)
21 percent (2,10 euro) is calculated in reports.

I don’t think you get it yet. For a 10 euro product, seller gets 8.26, government gets 21% x 8.26 = 1.74

21% x 10.00 = 2.10 is not the correct tax.

Last example was not using woocommerce. This website is using woocommerce and is EXACTLY how i want it to be. How it should be in my country. I hope someone can clear me out what they did to affect the changes.

https://www.koffietheewinkel.nl

screenshot of the cart/checkout
https://i.imgur.com/qTGVhoE.jpg

Calculations:

Product is 4,95 euro displayed in the store.

subtotal is 4,67 euro (excl. tax)
verzending: 4,95 (no tax calculation over here)
btw 6% : 0,28 euro (math: 6% of euro 4,67 euro= 0,28 euro)
total: 9,70 euro

btw means tax
verzending means shipping
6% tax because its a beverage/drink, otherwise 21% would be calculated.

I hope someone can tell me how to do it in woocommerce, because this shop did it. So woocommerce is able to do it!!

@lorro, i asked the website developer of https://www.koffietheewinkel.nl to chim into this topic. Lets see what he got to say and clarify it.

he answered me that i am calculating it wrong and that woocommerce is correct. So it’s my misunderstanding.

@lorro, can you tell me how to remove

(Includes €1.29 Tax) or to rename it Includes Tax only, without the tax amount displayed over there. thank you