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VAT Calculation in 1.4.2 - Has This Scenario Been Fixed? 
 
J_T_
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Joined:  2008-08-07
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We still use 1.3.x and have this annoying problem.

Product, Ex VAT costs £82.95 currently 17.5% VAT

Someone orders 48 of them. This person expects to pay £4,678.38

Because:

£82.95 * 48 = £3,981.60 * 1.175 = £4,678.38

That’s easy. But Magento does it differently.

Magento’s way:

£82.95 * 1.175 = £97.46625 - It rounds this to £97.47 * 48 = £4,678.56

So it ends up with 18p more because of this rounding too early.

Has this been fixed in 1.4.x?

 
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J_T_
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I put in a bug report just in case:

http://www.magentocommerce.com/bug-tracking/issue?issue=10687

Can’t imagine we’re the only ones with accountants and customers who don’t like this!

 
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elfling
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Still using 1.3x as well.

Has the 20% not fixed the rounding issues?

 
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elfling
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Just checked your bug report.

I agree totally on this and I’m pretty sure that its not been fixed on 1.4x as it still calculates in a similar way by line item and then multiplying.

People don’t notice it too much I guess because you need to order a lot of a product in terms of qty before you start noticing a difference.

Also using 3 decimal places doesn’t fix this issue.

Im pretty sure Virtuemart has a selection on if it European or US.

 
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J_T_
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Yeah, decent change that with the 20% rate, it’s far less of an issue. But the fundamental issue would still exist and with 3 VAT rate changes in just over 2 years, I wouldn’t rely on a “lucky” 20% rate sorting this out forever.

And yes, again only an issue on larger quantities so mainly issue for B2B but they tend to have the pickier, accounting-aware customers too.

So it would be nice if they sorted it out at the core, it can’t be that difficult to add in a US/EU switch, just a little if statement after all.

Thanks for looking in to it and acknowledging the issue. These little bugs are often a case of “Am I going nuts or is it real what I’m seeing” and then after banging your head and a calculator for a while, it’s reassuring if someone else concurs!

 
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