We have a single product with single price of 365 EUR and the store is located in EU. No matter where the customer is located, the price must always be 365 EUR and VAT is to be calculated from that total. Shipping is free.
I set the following options:
- set Tax Zones with all EU countries and their VAT and then a single
entry for "non-EU" countries with 0% VAT - set single Tax Rule that is applied to the product
- enabled "cross border trade"
- tax calculation based on "shipping address"
- have set default country destination (and have set store's location)
- set "including tax" to: catalog prices, shipping prices, display product prices in catalog, display shipping prices, display prices, display subtotal, display shipping amount
- set "yes" to: include tax in order total, display full tax summary
Problem is that when viewing cart, product price is correctly shown as 365.00, but subtotal and total is shown as 301.65 which is wrong, total should always be 365.00 and VAT should be calculated from that total.
How to set Magento to always show desired price? By now I read a lot about this topic and latter also changed all the settings at random, reindexed and cleared cache countless times and still no joy.
Examples:
Netherlands:
VAT 21%: 63.35
Total: 365.00
Germany:
VAT 19%: 69.35
Total: 365.00
Non-EU:
VAT 0%: 0.00
Total: 365.00
As I pointed out, total must always be 365.00 and it must show that everywhere but VAT also needs to be calculated from total and shown appropriately. At the moment, total is shown as 301.65, which is wrong.
Best Answer
What's the VAT for the destination country in this example? If my math is correct, based on your example, then this is what I calculate:
If your destination country in this example has a VAT of 21%, then your settings appear to be working correctly.