Magento Table Rates Shipping Price Not Calculated Correctly

shippingshoppingshopping-cartshopping-cart-price-rules

I have set up a simple Table Rates for my store.

The rules are based on Price vs Destination. I have it set up:
if the price is lover that 35 then shipping is 2.99 and if higher then 0.

But I don't know why, but Magento calculates it wrong… Please see attached screenshot.

Anyone has a clue why this is happening?

I have the prices (product and shipping) tax included and everything…

I don't get it, it seems like Magento is taking to account the price without Tax and based on that price applies shipping cost's, but I want it to take a subtotal with Tax included and apply the correct shipping cost based on that amount.

Any ideas on how to fix this?

Thank you,enter image description here

Best Answer

Magento works on tax exclusive shipping amount, you need custom code/extn to do tax inclusive calculation.

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