Hello, I am facing an issue regarding taxes.
I made some testing orders and the taxes are not calculated correctly.
I have set the tax rate to 24% for Greece ( I choose to override taxes in EU). Also, i have chosen to calculate tax to products and to shipping rates.
So for a total of 19.84€ (18.34+1.50 shipping) the calculated tax according to Shopify is 3.84€ . But the tax is not correct. The right tax amount is 4.76€.
Could someone tell me why this happens? As i understand it calculates a tax rate of 19% instead of the 24%.
Does this has to do with any settings or is a bug of Shopify?
I attach 2 pic to see what i mean.
The calculations seem to be correct. Both your subtotal and the shipping rate are tax included. Therefore it's calculating €19.84 divided by 1.24, which is €3.84.
Do you intend for it to calculate something differently (such as showing product prices without tax)?
I just saw your message to my accountant and he said that it was his mistake as he understood that I want to add the 24% to the total amount and not to calculate it.
So calculating is correct.
By the way. If I deactivate the option to charge tax to shipping I guess the tax remains the same to the checkout. Does this has to do with any other settings?
Thanks in advance,