VAT Tax retained calculation in quotation

Question

Working through my first quotations for a customer in Germany where VAT is 19%.  In the Accounting->Taxex, I created a tax called VAT DE, set it 0.19 and checked "Tax included in price" which is the norme in Germany.
I create the quotation, add a line item with a product from the price list with a cost of 9500, set the tax column to VAT DE, Odoo calculates a base amount of 7983.19 and tax of 1516.81.  It should be 7695 and 1805.  Did I set something wrong or is this a bug?

Ermin Trevisan · Accepted Answer

I don't know in which number system you are calculating. Mine is the same as Odoo's and Odoo's calculation is correct. if your price included 19% of VAT is 9500 gross, then your net price is 9500/1.19 which results in 7983.19.
You might remember that VAT rates are applied to net prices and not to gross prices, anything else does not make any sense.

Mike Greenish · Answer

Thanks for confirming the calculation is right and providing the logic behind.  I'm more used to tax being added after the price so I had the calculation going the wrong way.  Thanks!!

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