Tax Per Bill Adding shipping tax twice during checkout

[k2mdedia]

There seems to be a bug when using 'Tax Per Bill' option. My Shipping charges are double taxed during checkout.

My tax rate is 13% for both item and Shipping.
When i set price of my item at = 19.95
And the price of shipping is     = 18.99 (However system adds the 13% tax so it appears as 21.46 on the checkout)
The total tax appears as         = 5.06 <---This is the correct tax however
It taxes my shipping rate again = 2.47 (It taxes my shipping rate at 18.99 again)
Total tax becomes                     = 7.53 = which is wrong.

It double taxes my shipping cost.

I have attached a screenshot. Keep in mind though that the shipping rate is 18.99 however the system changes it to 21.46 and then taxes it again at 18.99(original shipping cost)

NOTE: Both item and shipping plugin are set to 'Apply default rules'.

[XenoGen]

I have this same error. The user above explains it well.

I'm using Virtuemart 3.0.8 and the ta on shipping is added twice.

How to correct this issue?

Also, updating Virtuemart to the latest seems to cause all kinds of issues with my template, so updating to the new VM is not on option on this live site. I just want to know what file to edit where to fix it manually.

Anyone have any ideas?

What file it might be ?

Thanks!

[GJC Web Design]

have you set your shipping plugin to not tax?