Magento – Wrong tax calculation in paypal when discount is given

ce-1.9.1.0paypalpaypal-express

I have a problem with the discount calculation in PayPal in combination with Magento. So far I just found other questions related to rounding problems or similar in PayPal and not comparable with my issue.

I use Magento CE 1.9.1.0

The Problem:

PayPal works great when there is no discount. It takes the

  • net subtotal
  • net shipping costs
  • the tax
  • grand total incl. tax

and everything is fine.

But when the user gets a %-discount, PayPal still calculates the tax based on the subtotal (without subtracting the discount). I hope the following image will clarify the issue.

enter image description here

In short:

  • discount has to be excl. tax
  • subtotal has to 'contain' the discount excl. tax
  • tax has to be calculated after discount substraction

The grand total in PayPal fits, because the tax of the discount effect (2,11€) moved from subtotal to tax.

An Approach:

Tell PayPal to use the discount excl. tax und calculate the tax after the discount has been subtracted from the subtotal.

Question:

How do I manage that?

Thanks in advance!

Edit 1:
PayPal Express is in Sandbox mode (if that is important to know)

Edit 2:
Sry, with "PayPal caluclates", I mean the Service PayPal, the Magento extension or the whole payment process related to PayPal 😉

Here are my tax configuration settings:

enter image description here
enter image description here

Best Answer

Paypal doesn't calculate tax. Magento does and passes the information along.

Based on the updated information looks like you need to change tax setting apply discounts on prices to 'excluding tax' to get the correct tax calculation.