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Wrong tax calculation when paying with PayPal after 1.8 update
Jr. Member
Total Posts:  7
Joined:  2010-03-06

Since updating to 1.8 CE some orders get marked as “Suspected Fraud” because the amounts don’t match.

Here’s an example:
The customer ordered one item the costs 10 euros, including 20% tax. The shipping fee is 5.50 euros, including 20% tax. Everything’s fine on the Magento side: it displays:

- Subtotal € 10
- Shipping & Handling € 5.50
- Grad total excl. tax € 12.92
- Total tax € 2.58
- Grand total incl. tax € 15.50

But PayPal receives this a little differently:

- Just one item, even though “Admin > System > Configuration > Sales > Payment Methods > PayPal Payment solutions > Website Payments Standard > Advanced Settings > Transfer Cart Line Items” is set to “Yes”
- The one item shows a price of € 12.92, which is fine - it’t the item’s price plush shipping without the tax.
- It then adds the shipping a second time, in a separate “Shipping” line, with a price of € 4.58
- The Grand total is € 20,08

Magento’s and PayPal’s grand totals don’t match up and so I get the “Suspected Fraud” order status.

What I’ve observed so far:

- It only happens if the customer is paying via PayPal
- It only happens if the customer is from Austria (the shop is Austrian too)
- I’ve selected “Transfer Cart Line Items”, but they aren’t transferred
- I’m 99% sure this didn’t happen before the 1.8 update

These are my tax settings:

Calculation Settings
- Tax Calculation Method Based On Total
- Tax Calculation Based On Shipping Address
- Catalog Prices Including Tax
- Shipping Prices Excluding Tax
- Apply Customer Tax After Discount
- Apply Discount On Prices Excluding Tax
- Apply Tax On Custom price if available

Default Tax Destination Calculation
- Default Country Austria
- Default Post Code *

Price Display Settings
- Display Product Prices In Catalog Including Tax
- Display Shipping Prices Including Tax

Shopping Cart Display Settings / Orders, Invoices, Credit Memos Display Settings
- Display Prices Including Tax
- Display Subtotal Including Tax
- Display Shipping Amount Including Tax
- Include Tax In Grand Total Yes
- Display Full Tax Summary Yes
- Display Zero Tax Subtotal No

Fixed Product Taxes
- Enable FPT No

Please let me know if you need any additional details.


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Jr. Member
Total Posts:  2
Joined:  2012-03-12

same problem.

But not every PayPal order. It happens when you have products with different taxes. In my case product A 7% and product B 19%. In Magento it is all right. But PayPal get the wrong total including shipping (without tax). So the customer has to pay more.

I suppose it was the upgrade to 1.8 or the Change from symetrics Market Ready Germany to Firegento German Setup.

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Jr. Member
Total Posts:  7
Joined:  2011-10-02


This is a common bug in the integration of the built in PayPal Extension for Magento. We recently developed a new plugin that solves this issues and comes with more features:

I am sure this will be the solution to you troubles.

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Jr. Member
Total Posts:  4
Joined:  2012-12-05

This is a very complicated problem

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