Value added tax (VAT), or goods and services tax (GST) is a tax used by non United States countries that is levied on any product that is added to the cart.
To configure VAT/GST product inclusive, navigate to the admin menu in the BuyNow module and select Tax.
Then, make sure you are on the Tax Setup tab.
Now, select the VAT/GST radio button from the tax options.
When VAT/GST Tax is selected the following settings will be displayed:
VAT/GST (Product Inclusive) - When VAT/GST Tax is checked the cart will charge the tax rate entered in the “Tax Rate” textbox and implement the VAT/GST tax calculation. You will need to load all product pricing inclusive of VAT/GST tax. During the cart checkout the confirmation pages and invoice VAT/GST is displayed as follows.
Product 1: $110
Product 2: $55
Total (incl. VAT): $187
VAT included (10%): $17
The formula for the tax (VAT) is as follows:
VAT($) = Total($) * VAT(%) / (1 + VAT(%))