title: Magento VAT (tax) rates not working correctly on displayed prices: VAT is added even catalog prices are including tax
body: <p>I'm setting up a store and have already got prices on products.  NOW I'm looking at the VAT issue and have set up tax details under Sales > Tax to apply a UK VAT rate of 20%.</p>
  
  <p>The prices which have been entered in the product catalogue are all inclusive of VAT and so in System > Configuration > Sales > Tax I've set 'Catalog Prices -> Including Tax' and 'Display Product Prices In Catalog -> Including Tax'.</p>
  
  <p>Despite 'Catalog Prices -> Including Tax' the system seems to believe that the price stored is exclusive of VAT so, for example, a product of £10.50 (inclusive) is showing as £10.50 PLUS VAT i.e. £12.60, although the catalogue entry price is showing as £10.50 GBP Inc.Tax</p>
  
  <p>In fact, even if I say 'Catalog Prices -> Excluding Tax', it doesn't seem to make any difference.</p>
  
  <p>It seems that no matter what I tell it, it thinks my catalogue prices are exclusive of VAT.  Am I missing a setting somewhere?</p>
  
  <p>Magento ver. 1.7.0.2</p>
  
  <p>Tax setup details:-</p>
  
  <pre><code>Tax Class = Retail Customers (the only class)
  Product Class = Taxable Goods (all products assigned to this)
  Tax Zone = UK TAX = 20%
  Tax Rule = Retail Customers / Taxable Goods / UK Tax
  </code></pre>