Magento Open Source, 1.9.x

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Tax Warning Messages

Some combinations of tax-related options might cause customers to lose confidence in the purchase, and abandon their carts. In general, these conditions occur when the tax calculation method is set to “Row” or “Total,” and the customer is presented with prices that both exclude and include tax, or tax on an item basis in the cart. Because the tax calculation is rounded, the amount that appears in the cart might differ from the amount that a customer expects to pay.


Shopping Cart Line Item that Includes and Excludes Tax

If your tax calculation is based on a problematic configuration, the following warnings appear:

Calculation Settings

Some combinations of price settings display prices which both include and exclude tax. This mixed message can be confusing to customers, and trigger a warning. Use the following tables for reference when configuring tax calculation settings:


Calculation Settings
Discount Settings

We strongly recommend that you use the following settings to avoid issues when configuring taxes in relation to discounts.

  • Discount Settings

    Field

    Recommended Setting

    Apply Customer Tax

    After Discount

    Apply Discount on Prices

    US and Canada

    Excluding Tax

    EU

    Including Tax


Calculation Settings