10% discount won't include VAT - Help!

[rachpar]

Hi clever forum people,
I'm trying to set up a 10% summer sale discount on my site and I'm having a problem. Having set it all up when you come to checkout the 10% is only taken off the ex VAT price of items. I've set the discount up to be calculated on 'cart contents including default tax' whihc I presumed meant the discount would include the VAT but if the item is 9.99, the 10% is only being calculated as 0.85p (ie 10% off the ex VAT price of £8.50) How do I get round this?? If I was a punter and I saw 10% discount I would expect a discount of 0.99p on a £9.99 item.

Any help form your collectively huge brains much appreciated!

Rachel

[wjcampbe]

Item price before VAT £8.50
VAT added in checkout £1.50
Gross price £10

Discounted price before VAT £7.65
VAT added in checkout £1.34
Gross Price £8.99

All a question of perception.

[los_design]

Beat me to it Bill.

One thing we try and inform our clients, in all your selling calculations, net price factoring etc ignore the vat as the net result on VAT is 0.00 (I know it is simplistic but you get the gist

Regards
Daren

[rachpar]

10% discount won't include VAT - help!

Ahhh Bill - yours is the biggest brain of all!! Yes, you're absolutley right. Thank you

Rachel