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GST not calculated properly
 
NikkiSix
Jr. Member
 
Total Posts:  3
Joined:  2010-08-16
 

Hi there,

I followed the instructions on this site

http://www.fontis.com.au/blog/magento/setting-magento-store-australia

And all seemed to go well until i tested it on the front end and noticed that the tax wasn’t 10%.

For example:

Subtotal $360.00
Shipping & Handling (Best Way - Table Rate) $18.00
GST $34.36
Grand Total $378.00

The tax rate is definitely set at 10%, so in the above example, 10% of $378.00 is not $34.36. Shouldn’t it be $37.80 ?
Has anyone come across this before?

Cheers,

EDIT : apparently the above example is right and GST is technically calculated at 11% or something like that, but im not going to pretend to understand..

 
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Vee_
Member
 
Total Posts:  46
Joined:  2008-07-07
Western Australia
 

The subtotal listed includes GST

The tax on the shipping fee isn’t being included in the GST amount you’ve provided

The grand total is being calculated by adding the subtotal and shipping

No idea if this helps you in any way, but I felt compelled to explain it

 
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NeilA
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Joined:  2007-09-17
Blue Mountains, Oz
 

The GST on $378 is indeed $34.36.
You work it out by taking the total amount - including GST and dividing by 11 to give the amount of GST.

It’s because you don’t pay GST on the GST component… Think about it. smile

But it is working correctly in the example you give.

Regards

 
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michamum
Sr. Member
 
Total Posts:  124
Joined:  2010-09-17
 
NeilA - 12 October 2010 02:05 AM

The GST on $378 is indeed $34.36.
You work it out by taking the total amount - including GST and dividing by 11 to give the amount of GST.

It’s because you don’t pay GST on the GST component… Think about it. :)

But it is working correctly in the example you give.

Regards

Yes, the GST is already calculated in the subtotal of $360.00 Therefore the subtotal excluding GST is $327.27, plus freight (excluding GST) $16.36, total excluding GST $343.63, hence 10% GST on this total is $34.36

Hope this helps you to understand it.

 
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bennimartin
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Total Posts:  8
Joined:  2010-12-23
 

So should i be putting the prices in the product database including GST rather than excluding?

I can\’t see any GST on the Ministry Ground coffee store?

Any help would be much appreciated this is doing my head in!

Ben

 
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NeilA
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Total Posts:  1372
Joined:  2007-09-17
Blue Mountains, Oz
 

Hi Ben,
Yep, you enter the product pricing including GST, and Magento handles it from there.
You don’t see much GST on my site because coffee is GST-free, but it is involved in any equipment I sell, and it all works fine.

regards

 
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