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i have a problem with my site now that i have enabled taxes on my products.
prices are given including taxes and i have selected the option to display prices including taxes. and customers are being geolocated to calculate prices.
all international orders are taxed at 0% as gst is not payable on exported orders in india where i run my business. but the tax gst rate for india is 18%. so in my list of taxes all countries except for india have a 0% tax amount written into the csv. india is listed as having 18% tax in my csv tax file.
the problem is that now that i have entered my prices including taxes when a customer from outside of india purchases my product they are charged the price i have entered minus 18%. the calculation is being made by the system so that the price e.g. 200€ (inclusive 0% tax) is actually being charged at 200-18% = 169.49€
so rather than applying a zero % tax rate they are being given an 18% discount.
i have tried changing the 18% tax rate for india to a different number and whatever number i enter is reflecting as the “discount” being applied to international orders.
my only solution so far has been to manually add 18% onto the price for “rest of the world” so then after the system applies the false discount the price shows correctly.
does anybody know why this happens and if i can get the system to work as it should?
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