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### Author Topic: How to setup tax "indluded in price of products"??  (Read 1012 times)

#### dejanernisa1

• Beginner
• Posts: 1
##### How to setup tax "indluded in price of products"??
« on: April 11, 2012, 15:21:41 PM »
Hi!

I need help with setting up the taxes on VM.

My products have all mutual 8,5 % tax. Im trying to set the cart, so my customers sees the calculadted tax of 8,5 %  and that is already included in the product final price.
No mater how I set the VM taxes it always counts an additional tax in the amount of final price.

For example ;price on the web is 4,99 .
That is my selling price with included tax ,and the end it calculates aditional 8,5% to the final billing. so the bill is 5,40
How can I set that price 4,99 is shown in the store, and in the final bill? And that 8,5% tax is already included?

thx

#### john1974

• Beginner
• Posts: 4
##### Re: How to setup tax "indluded in price of products"??
« Reply #1 on: April 11, 2012, 20:15:40 PM »
I have the same problem showing tax correctly here in Australia. I may have a solution for you below, however I think the VM team should consider adding an extra calculation to the 'Math Operation' selection of Tax & Calculation Rules that does not add or subtract the tax amount but only shows the included TAX value in the tax field of the product pages/checkout page (is this possible VM team?)

I am getting around this problem at the moment (and it's by no means ideal) by setting the 'Cost price' field to show your final price (i.e. 4,99) then set up a taxes calculation of +% 8,5 and apply it to all shopper groups (including anonymous and default) and those countries which the tax applies to. So this mean you need to manually calculate the final price of all your products and set this as the 'Cost price'.

Obviously this is not ideal but unless the VM team can include a tax calculation rule that only shows the included tax amount, I don't see any other way?

#### Bigitybossman

• Beginner
• Posts: 21
##### Re: How to setup tax "indluded in price of products"??
« Reply #2 on: May 16, 2012, 18:48:09 PM »
I'm having the exact same trouble on an Australian site.

My all my prices include 10% gst (tax). In the cart i would like to show the 10% tax included in the price, however, I do not want any calculations to add or subtract any amounts from the total.

Does anyone have any other ideas or solutions?

cheers

#### richdean77

• Beginner
• Posts: 17
##### Re: How to setup tax "indluded in price of products"??
« Reply #3 on: August 12, 2012, 05:25:34 AM »
Anyone find a solution to include the 10% Australian GST? I don't want to add or subtract amount from total I just want it to be included with the final price

#### randomdev

• Jr. Member
• Posts: 90
##### Re: How to setup tax "indluded in price of products"??
« Reply #4 on: August 13, 2012, 20:55:28 PM »
Would also be interested in this, cost price already includes 10% GST

#### jjk

• Global Moderator
• Hero Member
• Posts: 2130
##### Re: How to setup tax "indluded in price of products"??
« Reply #5 on: August 14, 2012, 01:32:06 AM »
I wonder why Australians seem to have a problem with setting up their GST while it doesn't seem to be a problem for Europeans, who use the same "Value Added Tax" system
...maybe it's just the naming. GST = VAT in Europe, and since the VM2 default language is en-GB, the british abbreviation VAT is used instead of the australian GST.

Anyway, the 'normal' setup for price/tax calculations would be the way a merchant usually calculates his prices. A simple example:

Cost price (what you pay to your supplier)
+ Profit margin (you have to define that in the VM2 calulation rules and assign it to the product, when you create a new product)
+ Goods and Services Tax (+10% in your case)
= Final Price

However, if you for some reason prefer to enter other prices, you might have to use one of the price overrides. VM2 stores only whatever is shown in the cost price field into the database. All other prices are calculated.

Your 10% GST tax rule needs to be set as:
Type of Arithmetic Operation: VAT tax per product
Math Operation: +%
Value: 10.00
Currency: Austrailian dollar
Country: Australia
Visible for Shopper: Yes
Visible for Vendor: Yes

After you've set up this tax, the GST needs to be assigned to the product from the 'Pricing rules overrides' Tax dropdown list in the 'Product Edit' view.
In VM2 configuration 'Pricing' tab, you should also select the required tax display options.

#### randomdev

• Jr. Member
• Posts: 90
##### Re: How to setup tax "indluded in price of products"??
« Reply #6 on: August 14, 2012, 20:12:23 PM »
The project I am working on has the retail price including gst set as the 'cost price' (perhaps others have the same setup which causes issues?)
If I had the products cost set without gst I assume it would be a fairly simple process of settings tax +10% per product, but unfortunately this is not the case.

#### MoneyMagnets

• Jr. Member
• Posts: 72
##### Re: How to setup tax "indluded in price of products"??
« Reply #7 on: January 22, 2013, 18:20:40 PM »
I've got this issue too.

The only prices I'm given by the client is the final price which already includes the GST value.
So jjk I understand what you're saying but these are the prices that I'm being given by the client.

I think I will need to recalculate all the product prices without the GST but that's going to be a pain.

(By the way the data has been migrated from Shopfiy and I think they did the same thing there but the client didn't realise it.)

Did anyone find a decent solution?

Cheers,
Karen

#### VirtueMart Forum

##### Re: How to setup tax "indluded in price of products"??
« Reply #7 on: January 22, 2013, 18:20:40 PM »