magento prices inclusive of tax

Question

I have set up my products so that their price is inclusive of Tax.

However when I get to the Checkout page, the tax is being added to the Product Price. Where really it should only be there as a summary.

Anyone know how to fix this?

Solution 1

You need to have the correct settings in your configuration.

Look under System/Configuration/Sales/Tax/Calculation

There are two important choices here

• Catalog prices include tax
• Shipping prices include tax

These should both be set to the same value.

If you write your product prices including taxes, then these options should be set to yes.

Solution 2

From a high level the answer is to not setup your prices inclusive of tax. The Magento system expects you to setup prices without tax. All calculations in the system will be based on that.

If you want prices to display with tax, you should override and/or create new Blocks and phtml templates that display price information. You want to change what is shown to the user, and not change what is used in system calculations.