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

[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]

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

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,