Magento Applying tax (VAT) twice -

i got vat (tax) working on site prices being entered in catalog inclusive of tax. decision made input value exclusive of tax. little sql allowed me change stored prices, however, when catalog pages displayed, wrong values being shown... tax being applied twice!

the tax rate 20% , if product has tax exclusive price of £10, it's showing tax exclusive, £12.00 , tax inclusive £14.40.

if click on product product page shows correct values of £10 , £12.

the template displaying catalog prices catalog/product/price.phtml , in there see code i'm not understanding (i.e. assume it's correct because used product doesn't make sense me!)

i see (in template/catalog/product/price.phtml), first of all, variables being set...

$_price = $_taxhelper->getprice($_product, $_product->getprice()) $_finalprice = $_taxhelper->getprice($_product, $_product->getfinalprice()) $_finalpriceincltax = $_taxhelper->getprice($_product, $_product->getfinalprice(), true) 

and debug statements show these returning £10.00 , £12.00 expected - , £14.40 (not expected!).

further on, value output see...

   <span class="price-excluding-tax <?=$groupclass?>">         <span class="label"><?php echo $this->helper('tax')->__('excl. tax:') ?></span>         <span class="price" id="price-excluding-tax-<?php echo $_id ?><?php echo $this->getidsuffix() ?>">               <?php if ($_finalprice == $_price): ?>                     <?php echo $_corehelper->currency($_price, true, false) ?>               <?php else: ?>                     <?php echo $_corehelper->currency($_finalprice, true, false) ?>               <?php endif; ?>         </span>    </span> 

so seems me final price should exclusive price including tax, gets added in again!

that appears mechanism assume i've got setting wrong somewhere or others have been yelling long before now!

in configuration i've got set saying catalog prices exclude tax , country of origin , default destination both uk.

so missing? magento 1.7.0.2

in administration go settings > sales > tax > calculation -

and here set “tax based on” last item (package origin, or that). terms not perfect,

or can change setting accordingly want in cart.

if code perfect missing configuration on it.

also can go throw inner tabs fo tax calculation.

i hope sure