Magento 1.9 – VAT Tax (EU from UK) Not Displaying on Shopping Basket

magento-1.9taxvat

The VAT Tax breakdown isn't being shown on the shopping basket when a visitor adds a product to it. If they go to checkout, and then back (without doing anything in checkout), it will display the breakdown. Otherwise it just displays a sub total and total (which are exactly the same).

The settings we have configured are:

  • Tax calculation method based on: Unit Price
  • Tax Calculation Based On: Shipping Address
  • Catalog Prices: Excluding Tax
  • Delivery Prices: Excluding Tax
  • Apply Customer Tax: After Discount
  • Apply Discount On Prices: Excluding Tax
  • Default Country: UK
  • Default State/Post Code: *

Shopping Cart Display Settings

  • Prices: Excluding Tax
  • Sub Total: Excluding Tax
  • Delivery Amount: Incl. and Excl. Tax
  • Include Tax in Grand Total: No (Even on yes, this just shows two prices exactly the same, without VAT being added on).

There are several Tax rates set up, one for each applicable country at 20%. The Tax Rule is applied to retail customers and taxable goods; the issue seems to happen when multiple tax rates are selected (if I just select the UK VAT one, prices display as expected, otherwise if I select them all, it only displays ex VAT in everything).

Any ideas? I've followed both magento guides/documentation and other blog posts on doing this, and none of them help resolve the issue unfortunately.

Best Answer

This is most likely due to the Tax Origin not being set correctly (it's probably on its default: US). This is different from the Default Country setting, you can find it at System -> Configuration -> [SALES] Tax -> Origin.

Let me know if it works! :)

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