Hello @aravind1418,
It seems the way you set up the tax, the price of the product is calculated properly.
Let me describe…
Indian customers will have 18% tax.
So, Product price will be $508.37 + $508.37*18% tax(91.51) = $599.88
Non-Indian customers (for example United States) will have 0% tax.
So, Product price will be $508.37 + 0 tax = $508.37
If I am understanding wrong, then please share your site URL and a screenshot of the tax settings you have so we can check further.
I recommend https://snipboard.io for easily sharing screenshots – please follow the instructions on the page, then paste the URL here. It works with Chrome, Firefox, Safari, and Edge.
Thread Starter
Aravind
(@aravind1418)
Hi,
The price of the product for US customers should be $599.88. Since there is no tax for them, the total amount of $599.88 shouldn’t get broken down to $508.37.
If I had chosen to enter a price exclusive of taxes, and I entered $508.37 as the product price, then your example is correct.
But since I chose to enter a price inclusive of taxes, and I entered $599.88 as the product price, it should be the final price for customers that pay zero tax.
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This reply was modified 4 years ago by
Aravind.
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This reply was modified 4 years ago by Aravind.
Hi @aravind1418
Thanks for clearing the confusion. I get your point.
May I know if you are using our WooCommerce Shipping & Tax extension? If yes, then please reach us on the WooCommerce Shipping & Tax forum – https://wordpress.org/support/plugin/woocommerce-services/
If you have opted to set up taxes manually, this guide that will explain more on tax settings: https://docs.woocommerce.com/document/setting-up-taxes-in-woocommerce/.
If you’re not using the plugin, please share with us a screenshot of your tax and shipping settings and rates from WooCommerce → Settings → Tax and WooCommerce → Settings → Shipping respectively.
* I recommend https://snipboard.io for sharing screenshots – please follow the instructions on the page, then paste the URL in this chat.
We’ll be able to guide further once we check your settings.
Thread Starter
Aravind
(@aravind1418)
Hi,
The calculations are done exactly as it is mentioned in the guide that you shared.
This is what the guide says:
“Yes, I will enter prices inclusive of tax” means that all catalog prices are input using your store’s base tax rate.
For example, in the UK you would input prices inclusive of the 20% tax rate e.g. You enter a product price of £9.99 that includes £1.67 tax. A customer in the UK would pay £9.99 as defined, and a customer in the US would only pay £8.32.
Please tell me how is the base tax rate set? Does your code fetch the shop location and take the corresponding tax rate as the base tax rate?
Or is there an option for us to choose a base tax rate irrespective of the shop address?
Hi @aravind1418
Please tell me how is the base tax rate set?
If you’ve set up taxes manually, they should be calculated based on how you set the rates under WooCommerce > Settings > Taxes > Standard rates.
Does your code fetch the shop location and take the corresponding tax rate as the base tax rate?
This depends on where your default location is set in WooCommerce > Settings > General: https://woocommerce.com/document/configuring-woocommerce-settings/#general-options
For instance, if you set “No location by default” for customer location, no taxes will be included in the product price until customers enter their address at checkout because WooCommerce doesn’t know which tax rate to charge.
If you’d like us to take a closer look, can you please provide the following?
– Your store URL
– Screenshots of how your taxes are configured (tax options and rates under WooCommerce > Settings > Tax).
Thread Starter
Aravind
(@aravind1418)
Your answer to my second question is wrong. I doubled checked it. The base tax rate is taken from the store location. Even if I set the default customer location as “No location by default”, when I select United States as location on the checkout page, the actual product price of $599.88 gets broken down to $508.37 (even though the US tax rate I set is 0%).
This means that if the store location is India and the tax rate for Indian customers is 18% and I chose to enter the product price inclusive of taxes, the product price will be recalculated using this tax rate. So even if I enter $599.88 as the product price, it will get recalculated in the background as $508.37 for US customers also. This shouldn’t happen. Woocommerce needs to fix it. Base tax rate shouldn’t be store location tax rate. Instead there should be an option to select the base tax rate.
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This reply was modified 4 years ago by Aravind.
Hi @aravind1418
To get a better understanding of your store setup, can you please share the following?
– Your store URL
– Screenshots of your tax settings (tax options and rates under WooCommerce > Settings > Tax).
– System Status: You can find it via WooCommerce > Status. Select “Get system report” and then “Copy for support”. Once you’ve done that, paste it here in your response.
We haven’t heard back from you in a while, so I’m marking this thread closed for now – we’ll be here if and/or when you are ready to continue.
