Shipping costs with tax specified

Question

Whenever I go to the checkout page I see the following specification:

Subtotal            € 39,95 (this is including tax)
Shipping Excl. Tax  €  5,00  
Shipping Incl. Tax  €  5,00  
Tax                 €  6,93  
Endtotal            € 44,95  

It should be:

Subtotal            € 39,95 (including tax)
Shipping Excl. Tax  €  4,13 *
Shipping Incl. Tax  €  5,00 (4,13 + 0,87)
Tax                 €  7,80 (6,93 + 0,87)
Endtotal            € 44,95  

NB: The sums in parentheses are just to explain how these values are calculated. I don't need them displayed. Similarly this applies to "shipping excl. tax". I display it here to make things clear.

So in effect, the tax amount should be calculated for the subtotal including shipping

(39.95+5) - (39.95+5) / 1.21 = 7,80

How can I configure magento to do this?

Answer 1

1. Make sure that you have the correct Tax Class set up for Shipping in

   Store > Configuration > Sales > Tax > Tax Classes > Tax Class for Shipping
   

   21% VAT (in the Netherlands)

2. Make sure you have set the right Calculation Settings for Shipping Prices in

   Store > Configuration > Sales > Tax > Calculation Settings > Shipping Prices
   

   If you have entered € 5,00 in the Admin Panel then choose Including Tax
   If you have entered € 4,13 in the Admin Panel then choose Excluding Tax

3. From your Question I assume that you have already set Price Display Settings for Shipping Prices to Including and Excluding Tax

4. Set the proper Shopping Cart Display Settings for Display Shipping Amount in

   Store > Configuration > Sales > Tax > Shopping Cart Display Settings > Display Shipping Amount
   

   For example choose Including Tax

Answer 2

Go to Admin -> System -> Configuration -> Sales -> Tax -> Calculation Settings

There you can specify Shipping Prices: Including Tax