Calculate shipping cost based on Grand Total of basket?

Question

I’ve implemented a Table Rate Shipping system on my shop, based on a “Price vs Destination” condition. However, I’ve noticed that the shipping is calculated on the sub total of the basket (exc. VAT/Tax) instead of the Grand total (inc. VAT/Tax). How do I get Magento to base the shipping on the grand total, rather than the subtotal?

UPDATE: The version of Magento I'm using is Version 1.5.0.1.

Answer 1

Just on the back of the comments to huzefam's answer - you have mentioned VAT and are in the UK so I'm thinking maybe the GB language pack has been installed, in which case your path will be System -> Configuration -> Sales -> VAT submenu header -> Tax Classes and then you change the VAT Class for Delivery option.

See image below;

Answer 2

Go to : System -> Configuration -> Sales -> VAT Check Calculation settings and try the following settings :

• Tax Calculation Method Based On "total price"
• Tax Calculation Based On "shipping addres"
• Catalog Prices "including tax"
• Shipping Prices "including tax"
• Apply Customer Tax "before discount"
• Apply Discount On Prices "excluding tax"
• Apply Tax On "personalized price if available"

source : My Free Shipping is being calculated after tax is added

for more informations see :

• http://www.magentocommerce.com/knowledge-base/entry/configuration-sales-tax-calculation-settings
• http://www.magentocommerce.com/knowledge-base/entry/configuring-general-tax-settings