Answers.Body: <p>Try unticking the <code>This tax is already included in the taxable subject</code> checkbox.</p>
  
  <p>I would imagine that with this checked, Commerce assumes that the prices entered for products already have tax applied, so the tax amount is calculated on that basis, hence it being 1/6 of the total rather than 1/5.</p>
  
Answers.ContentLicense: CC BY-SA 3.0
Answers.CreationDate: 2018-01-12T19:10:11.867Z
Answers.Text: Unfortunately when I do that Steve the cart.totalPrice shows as £9,600 when I want it to show as £8,000. Any other avenues you'd recommend I check? I imagine I could change the price to be £6,400 but would like to avoid that if possible.
Answers.UserDisplayName: patrick.altair
Answers.ContentLicense: CC BY-SA 3.0
Answers.CreationDate: 2018-01-12T19:14:02.110Z
Answers.Text: If you untick the box you'll need to make sure all prices that you put in for products are excluding VAT. Is the £8000 supposed to be including or excluding VAT?
Answers.UserDisplayName: Steve Rowling
Answers.ContentLicense: CC BY-SA 3.0
Answers.CreationDate: 2018-01-12T21:50:53.163Z
Answers.Text: Ok understood Steve. So all products inside commerce will need to be listed minus their 20% Vat.
Answers.UserDisplayName: patrick.altair
Answers.ContentLicense: CC BY-SA 3.0
Answers.CreationDate: 2018-01-09T17:52:37.107Z
Answers.LastActivityDate: 2018-01-09T17:52:37.107Z
Answers.UserDisplayName: Steve Rowling
Body: <p>I'm encountering a problem with how to show UK style VAT tax on an item. I've created a tax rate called VAT at 20% that is included in the taxable subject. </p>
  
  <p>However when this tax is computed on say £8,000 rather than showing the tax as 20% or 1/5th = £1,600 it shows it as 1/6th = £1,333.33. I can't figure out why the tax isn't applying properly. Settings below:</p>
  
  <p><a href="https://i.sstatic.net/nd2rs.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/nd2rs.png" alt="Settings for UK VAT Tax rate at 20% in Craft Commerce"></a></p>
  
Tags: <plugin-craftcommerce>
Title: How to compute UK style VAT in Craft Commerce?
ThreadText: # How to compute UK style VAT in Craft Commerce?
  
  (Asked by: username_0 on 2018-01-09)
  
  I'm encountering a problem with how to show UK style VAT tax on an item. I've created a tax rate called VAT at 20% that is included in the taxable subject.
  
  However when this tax is computed on say £8,000 rather than showing the tax as 20% or 1/5th = £1,600 it shows it as 1/6th = £1,333.33. I can't figure out why the tax isn't applying properly. Settings below:
  
  [![Settings for UK VAT Tax rate at 20% in Craft Commerce](https://i.sstatic.net/nd2rs.png)](https://i.sstatic.net/nd2rs.png)
  
  **Tags:** plugin-craftcommerce
  
  
  ---
  
  ## 1 answers
  
  ### Answer by username_1 on 2018-01-09. Score: 3 | Accepted answer
  
  Try unticking the `This tax is already included in the taxable subject` checkbox.
  
  I would imagine that with this checked, Commerce assumes that the prices entered for products already have tax applied, so the tax amount is calculated on that basis, hence it being 1/6 of the total rather than 1/5.
  
  > **Comments:**
  > **username_0**: Unfortunately when I do that username_1 the cart.totalPrice shows as £9,600 when I want it to show as £8,000. Any other avenues you'd recommend I check? I imagine I could change the price to be £6,400 but would like to avoid that if possible.  
  > **username_1**: If you untick the box you'll need to make sure all prices that you put in for products are excluding VAT. Is the £8000 supposed to be including or excluding VAT?  
  > **username_0**: Ok understood username_1. So all products inside commerce will need to be listed minus their 20% Vat.  
  
  ---
  
  