Magento – To show coupon (shopping cart discount) amount including tax

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As I try to show correct EU taxes I need to show correct coupon discount(shopping cart discount). My current options are:
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These options including tax are recommended on EU while end customer must see their prices always including tax. The problem is that Magento shopping cart rule discount (coupon) amount is always excluding tax.
How to include tax into this label and show it in totals correctly ?

Thank You

Best Answer

Changing 'Apply discount on prices' to 'including tax' will ensure that discounts are displayed inclusive of tax, but in my experience this throws out the overall tax calculation. This seems to be because it will now subtract the GROSS discount (tax incl.) from the tax excl. basket total before calculating overall tax, whereas it should still subtract the NET discount (tax excl.).

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