is rounding with taxes correct? possible problem

development_s64
Shopify Partner
4 0 0

Hi,

I'm not sure the rounding of orders that contain products with taxes included is correct. I have a 0.01 diference in a basic order I created.

Can anyone clarify?

 

Situation:

- I made an order with 1 product that costs 10 eur.

- There's 25 eur in shipping.

- There's vat 23% which applies to product and shipping.

- Taxes ARE included in prices. So Shopify is using the formula Tax = (Tax Rate * Price) / (1 + Tax Rate)

- For reference, please see the screenshot in http://grab.by/nWKq

So the backend says:

Subtotal: 10 eur

Shipping: 25 eur

VAT: 6.54 eur

Total: 35.00 eur

I believe the VAT should be 6.55 and the total should be 35.01, because:

tax product = (0.23*10) / (1+0.23) = 1.86991....

tax shipping= (0.23*25) / (1+0.23) = 4.67479....

so:

product price = 10 - 1.87 = 8.13

shipping price =  25 - 4.67 = 20.33

Sub-Total = 8.13+20.33 = 28.46

Tax = 28.46 * 0.23 = 6.5458   

Total= 6.55+28.46 = 35.01

 

So which one is correct? 

I'm using a invoicing software and their calculations give 35.01 as the total. Not the value provided by Shopify. 😕

 

Note to Shopify devs:

I'm using the store flatley-farrell8724 and the order has the id 173288203

Replies 2 (2)
jdreid
New Member
1 0 0

Hi Mate,

Did you get any solution to this?

marcfitt
New Member
1 0 0

Shopify roundup on every line, which is completely wrong. 

For example, if you have 3 items valued at $45 and their are on separate line, the taxes amount will be different from having all items on one line as (item value x3)

If you apply line discount vs order discount, it will also change the taxes amount.
I've reported that issue in 2019 and still nothing.