Wrong tax calculation (16% instead of 19%)

Hi @deckermax16188

The tax rate for your products appears to be miscalculated on the checkout page. This could be due to various factors, such as an issue with how the tax rate is applied to the products in the cart or a problem with how the tax rate is displayed on the checkout page.

It’s possible that a conflicting plugin or setting is causing the issue or that there is a bug in the WooCommerce plugin itself. To determine the cause, you should check to see if any other plugins or settings affect how the tax is calculated. For instance, some plugins allow you to set custom tax rates for specific products or categories, so it’s worth investigating if any of these are causing the issue.

If you have any further questions or need additional assistance, please don’t hesitate to reach out. I’m here to help!

Hi @deckermax16188

Thanks for reaching out!

The tax calculation on your Checkout page amounting 15,966.39 is correct since your Tax Settings for Prices entered with tax is set to Yes, I will enter prices inclusive of tax. Hence, the computation will be:

tax_amount = price - ( price / ( ( tax_rate_% / 100 ) + 1 ) )

However, if it is set to No, I will enter prices exclusive of tax, the computation should be:

tax_amount = price * ( tax_rate_% / 100 )

This will result to a tax amount of 19,000.

You can learn more about Setting up Taxes in WooCommerce on this support documentation: https://woocommerce.com/document/setting-up-taxes-in-woocommerce/

Hope this helps!

Thank you both very much for your reply!

I think I now see the issue, both answers make absolute sense however @xue28 answer already solves the problem.

Thanks again

Hi @deckermax16188

You are most welcome and I’m glad the confusion has been cleared already ??

Meanwhile, if you have a few minutes, we’d love it if you could leave us a review:

https://www.ads-software.com/support/plugin/woocommerce/reviews/

Thanks!