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VAT Calculation is wrong!!(all is OK - I was wrong!!)-closed

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gearup:
Hi,

So I set VAT rate of 9% which is correct for Pharmaceutical Products in Romania.

My settings are price includes VAT.

When I do a test order for 10.00 GBP I see 0.83 GBP stated as the the VAT element.

It should be 0.90 GBP.

When I do a test order for 500.00 GBP I see 4.13 GBP stated as the the VAT element.

It should be 4.50 GBP.

These VAT people have the power to kill a business.

I provide one attachment as an example.

I must fix this, it is so simple math, so what can be wrong?

Will let you know what I find.

Regards,

DarkViper:

--- Quote from: gearup on September 20, 2012, 07:30:04 PM ---I must fix this, it is so simple math, so what can be wrong?

--- End quote ---

There is nothing to fix....   simple math ;)

The calculation of the value added tax is based always on the net price.

Price excl. VAT   = 100%
VAT rate  =  9%
Price incl. VAT  = 109%

freeSbee:
Hi gearup

Your thoughts apply if VAT is not included:
10.00 GBP * 9% / 100% = 0.90 GBP

But you've chosen prices including VAT, therefore VAT is calculated different:
10.00 GBP * 9% / 109% = 0.83 GBP

Regards Christoph

gearup:
Hey guys,

forgive me I'm a little stressed right now.

Thanks for the input.

My boss convinced me it was wrong - I should have been more confident.

VAT (especially involving different EU countries) is just a bit scary for me.

Regards,

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