<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>

CC BY-SA 3.0
2018-01-12T19:10:11.867Z
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.
patrick.altair
CC BY-SA 3.0
2018-01-12T19:14:02.110Z
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?
Steve Rowling
CC BY-SA 3.0
2018-01-12T21:50:53.163Z
Ok understood Steve. So all products inside commerce will need to be listed minus their 20% Vat.
patrick.altair
CC BY-SA 3.0
2018-01-09T17:52:37.107Z
2018-01-09T17:52:37.107Z
Steve Rowling
<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>

<plugin-craftcommerce>
How to compute UK style VAT in Craft Commerce?
# 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

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## 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 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.  
> **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 Steve. So all products inside commerce will need to be listed minus their 20% Vat.  

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