Products Price (Net) vs Products Price (Gross)

[Guest]

My client is setting up her web shop with the various US State taxations but is getting a significant variation between the products price (Net) and products price (gross).

 

For example:

 

When adding a product she selects that the item is a "taxable good".

 

The products price (net) is entered as 4.0000.

 

The products price (gross) then displays as 14.357

 

She is (and I am) confused by this as there are multiple taxes input for the various states, however, most are under 10%. But how is it displaying that gross price or where does it get that gross price from?

 

When I do a test order, I am not sure what is happening at checkout. I get this:

 

Sub-Total: $4.00

Flat Rate (Best Way): $9.95

+ + + + + + + + + + + + + + + + + + + + + + +

+ + + + + + + + + + + + + + + + + + + + + + + + + + : $9.84

Total: $23.79

 

I assume the ++++ etc $9.84 is the tax rate. Why is it displaying as a lot of plus symbols? Is that applying all the States tax rates to the order (ie each + being another State tax rate?)

 

Also this $9.84 amount, if it is the tax rate why is it different to what is displaying as the gross in that particular product (I bought the same product in the test purchase as I have displayed above with the (net) and (gross) figures.)

 

Should we have a different tax class for each State? At the moment she has set it up with one tax class (taxable goods) for all the States in the US. Is this why we are having a problem with the (net) and (gross) variation and also why the checkout has an odd thing happening with it?

 

Thank you

 

Lisa

[Guest]

I think I may be wrong on the tax class thing, because you have to apply all tax classes to a product - you don't know which State a person is going to be purchasing from.

 

So anyway - we are really confused with the taxes issue and would appreciate any assistance.

 

Thank you!

 

Lisa