Does Shipping Price include tax?

The shipping price generated by all WebShopApps extensions does not include tax. Deciding tax on shipping is outside the extension, we just return a shipping price, tax is managed separately. This is in line with all Magento shipping modules and all shipping extensions, the tax is not handled within.

In Premium Rate and ProductMatrix there is support for using Tax Inclusive Prices. This is for rule filtering e.g. you can say cart subtotal excl tax > $100 or cart total incl tax > $100.  It has nothing to do with the tax on the shipping itself.

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One reply on “Does Shipping Price include tax?”

  1. just incase anyone else gets stuck with this.

    in (admin / Configuration / Sales / Tax / Calculation Settings) there is an option called ‘Shipping Prices’ and you can set this to either:

    – Excluding Tax = the prices in matrix rates will be reguarded as having no tax on them and it will be added.

    – Including Tax = the prices in the matrix rates have tax included in the prices and magento will calulate the pre tax price from this by removing the tax

    This setting is why i was getting incorrect shipping prices and is related to this topic.

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