Could you please guide me, how I can remove the tax on delivery cost.
Add product to the cart (product has gross pricing - price 1000$ which includes tax 100$)
Verifty subtotal = total = 1000$
Navigate to checkout page, select delivery address, Select delivery mode (standard delivery 50 $ gross price)
Verify subtotal = 1000$, delivery charge = 50$, total = 1050$
Below the order total, you can see 'Your order contains 105$ tax'
Technically what is happening, (Service: DefaultCalculationService, Method: getTaxCorrectionFactor)
Check if total & subtotal are same ? (1050 != 1000)
If not, loadfactor = total / subtotal. (loadfactor = 1.05)
The taxvalue is multiplied by this loadfactor (tax = 100 * 1.05 = 105)
Is there a way, I can get rid of tax being applied on delivery cost ?
Overriding the standard method is the last option I am thinking to take. As this is pretty much practical scenario where we don't want to charge tax on delivery cost, has anyone faced this ? What's the resolution ?