Price rounding with taxes

Knowledgebase Articles: Price rounding with taxes

How the price is rounded after a tax has been applied can be defined by the shop owner in the Edit Shopping Cart Settings window (Settings > Edit Shopping Cart Settings)
There are 3 rules available:

  • Always round down (0.001-0.009 is rounded to 0.00) 
  • Always round up (0.001-0.009 is rounded to 0.01)   
  • Scientific  (0.001-0.004 is rounded to 0.00, 0.005-0.009 is rounded to 0.01)
Example:
Product Price Tax Rate Tax Value   Always Up Scientific Always Down
22.5 20% 4.500   22.5+4.5=27 22.5+4.5=27 22.5+4.5=27
23.54 20% 4.708   23.54+4.71=28.25 23.54+4.71=28.25 23.54+4.7=28.24
28.72 20% 5.744   28.72+5.75=34.47 28.72+5.74=34.46 28.72+5.74=34.46


Tax Calculation and Price Rounding

In the Shopping Cart taxes are calculated based on the Shop Country specified for the shop, because customer's billing details are unknown at this stage. That is why the tax value may be changed after the customer enters his billing/shipping address.

Tax calculation also depends on the Price Display Format (Working with Product Taxes):

Display Product Price exclusive of Taxes

    • Percentage taxes
      1. Tax is calculated for product subtotal.
      2. Then it is rounded.
      3. Tax is calculated for a Shipping Method (if applied).
      4. Then it is rounded. 
      5. Both tax values are summed up.
    • Flat taxes are charged per order(if at least one product has this tax applied)
    1. Tax is calculated for a Shipping Method (if applied).
    2. Both tax values are summed up. 

Display Product Price inclusive of Taxes

    • Percentage taxes
      1. Tax is calculated for each product and product option separately.
      2. Then each tax value is rounded separately.
      3. Tax is calculated for a Shipping Method (if applied).
      4. Then it is rounded. 
      5. All tax values are summed up.

Case 1 - Product with option(s)

  1. Tax is calculated for a product.
  2. Then it is rounded. 
  3. Tax is calculated for each product option.
  4. Then it is rounded. 
  5. All tax values are summed up. If several items of the product are added to the cart, multiply the last tax value by product quantity.

Case 2 - Several items of the same product

  1. Tax is calculated for a product.
  2. Then it is rounded. 
  3. Tax value is multiplied by product quantity.
    • Flat taxes are charged per order(if at least one product has this tax applied)
    1. Tax is calculated for a Shipping Method (if applied).
    2. Both tax values are summed up. 

 

 

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