Error in VAT exemption calculation

[Alessandro Mencarini]

Here is the scenario where I found a problem:

Product A costs €10.00, excluded VAT. VAT in Italy is 21%, so I enter the product price as €12.10.

Now, when I ship abroad I have to take VAT off the price. Spree does a nice job but the calculation is wrong. Instead of brining the product price back to €10, it takes the 21% off €12.10, bringing the price to €9.56.

In my installation I've changed the offending lines in the DefaultTax calculator this way: https://gist.github.com/1860175

Is that the best way to achieve it? If it is let me know and I'll make a pull request.

Thanks!

[Ryan Bigg]

Sure, submit a pull request and we can look over it. I would personally move the round_to_two places lines out into another method that takes a line_item_total argument, mainly because these two lines are very close to being identical.

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[complistic]

I also found the same error with GST (VAT 10%)

I'm thinking that the reason fo the error is because the DefaultTax calculator is for Sales Tax and not VAT?

The correct GST equations would be:

10ex = 11inc (times by 1.1)
11inc = 10ex (divide by 1.1)
10ex = 1gst (times by 0.1)
11inc = 1gst (times by 0.11)

[complistic]

opps i made a error on that last equation..

should be:
11inc = 1gst (divide by 11)

So $11 Includes $1 GST (VAT 10%)