TAX Inclusive/Exclusive

[Guardoo]

When selecting the "Inclusive" tax type, it adds the tax on top of the items subtotal price which results in a total due of $12 (instead of $10).

 

When selecting the "Exclusive" tax type, it shows the actual Inclusive total due (also on Step 4) of $10 (instead of $12) but the Invoice generated in background and payment amount parsed to the gateway e.g. PayPal is $12. 

 

BUG: Inclusive and Exclusive tax amount is incorrect calculated and generated Invoices are different from the amount displayed during the checkout process.

This was tested with the Standard, Ajax and Wizard order form.

The error appeared on all of them. It's either overcharging the customer, lowering the price to match the desired total price or not charge tax at all.

 

If this is a confirmed bug, the severity is CRITICAL and needs immediate attention.

[Tyson]

I appreciate the report and we are aware of concerns some have expressed (such as here) with the tax types in some regions. The difference between inclusive/exclusive on the tax rules is purely visual--the tax is shown in the total (inclusive) or it is not (exclusive). We will need to include additional support in the future for package pricing to support "price includes tax" or "price excludes tax", as you are alluding to.

[Guardoo]

Thanks for the swift response. As a EU based business, we're unable to include VAT in our invoices at the moment. I hope that this will be resolved in the next release as VAT and generally proper accounting is vital to any serious business.