Tax on shipping being added twice

[dsrpmedia]

hi I am using VM 2.6.10 / joomla 2.5.25

I have my tax set to tax per bill

when I add 'default tax' to the shipping method (I have tried several shipping plugins, same behaviour on all) the tax on shipping is being added to the bill, but it is also being added to the actual shipping charge, so in effect it is being added twice.

example:

before I add the shipping option I get this in the cart
order total $90
tax (@12%) = $10.80 (correct)

with a shipping option chosen I get this in the cart
order total $90
tax on order $12.00 (now includes the $10.80 tax on product + $1.20 tax on the shipping - shipping is $10.00 + 12% tax)
tax on shipping $1.20 (tax on shipping added again)
Shipping Cost $11.20 (base shipping cost is $10.00 + 12% tax = $11.20 - the tax is being added again to the base shipping cost)

how can I stop the tax on shipping from being added to the base shipping cost before it is taxed on the tax per bill?
*I tried the 'apply no rule' option and it stopped taxing the shipping altogether
** I saw in an older post someone had a similar problem caused by multiple tax rules - I checked, I do not have any duplicate tax rules

thank you!!!!

[VM User]

We're having the same problem with the shipping being taxed twice. Is this is a virtuemart 2.6.10 core problem with Joomla 2.5.27? Seems to be the same problem on different templates.
Can a taxation rule be written to solve this problem?

[dsrpmedia]

I tried a clean install and did not get the problem - now I have to figure out what is different in my site(s)