diff --git a/admin/writepanels/writepanel-order_data.php b/admin/writepanels/writepanel-order_data.php
index 79252e856fe..2c9628e5362 100644
--- a/admin/writepanels/writepanel-order_data.php
+++ b/admin/writepanels/writepanel-order_data.php
@@ -290,7 +290,7 @@ function woocommerce_order_items_meta_box($post) {
 						</td>
 						<?php do_action('woocommerce_admin_order_item_values', $_product, $item); ?>
 						<td class="quantity"><input type="text" name="item_quantity[]" placeholder="<?php _e('Quantity e.g. 2', 'woothemes'); ?>" value="<?php echo $item['qty']; ?>" /></td>
-						<td class="cost"><input type="text" name="item_cost[]" placeholder="<?php _e('Cost per unit including tax e.g. 2.99', 'woothemes'); ?>" value="<?php echo $item['cost']; ?>" /></td>
+						<td class="cost"><input type="text" name="item_cost[]" placeholder="<?php _e('Cost per unit ex. tax e.g. 2.99', 'woothemes'); ?>" value="<?php echo $item['cost']; ?>" /></td>
 						<td class="tax"><input type="text" name="item_tax_rate[]" placeholder="<?php _e('Tax Rate e.g. 20.0000', 'woothemes'); ?>" value="<?php echo $item['taxrate']; ?>" /></td>
 						<td class="center">
 							<input type="hidden" name="item_id[]" value="<?php echo $item['id']; ?>" />
@@ -303,7 +303,7 @@ function woocommerce_order_items_meta_box($post) {
 		</table>
 	</div>
 	<p class="buttons">
-		<select name="item_id" class="item_id">
+		<select name="add_item_id" class="item_id">
 			<?php
 				echo '<option value="">'.__('Choose an item&hellip;', 'woothemes').'</option>';
 				
@@ -502,7 +502,7 @@ function woocommerce_process_shop_order_meta( $post_id, $post ) {
 			 	if (!isset($item_cost[$i])) continue;
 			 	if (!isset($item_tax_rate[$i])) continue;
 			 	
-			 	$ex_tax = woocommerce_clean($item_cost[$i]) / ((woocommerce_clean($item_tax_rate[$i])/100)+1);
+			 	//$ex_tax = woocommerce_clean($item_cost[$i]) / (($item_tax_rate[$i]/100)+1);
 			 	
 			 	$order_items[] = apply_filters('update_order_item', array(
 			 		'id' 			=> htmlspecialchars(stripslashes($item_id[$i])),
@@ -510,7 +510,6 @@ function woocommerce_process_shop_order_meta( $post_id, $post ) {
 			 		'name' 			=> htmlspecialchars(stripslashes($item_name[$i])),
 			 		'qty' 			=> (int) $item_quantity[$i],
 			 		'cost' 			=> number_format(woocommerce_clean($item_cost[$i]), 2, '.', ''),
-			 		'cost_ex_tax' 	=> number_format(woocommerce_clean($ex_tax[$i]), 2, '.', ''),
 			 		'taxrate' 		=> number_format(woocommerce_clean($item_tax_rate[$i]), 4, '.', ''),
 			 	));
 			 	
diff --git a/assets/js/write-panels.js b/assets/js/write-panels.js
index d56a7ba4e66..268ddee1eaf 100644
--- a/assets/js/write-panels.js
+++ b/assets/js/write-panels.js
@@ -58,9 +58,9 @@ jQuery( function($){
 					
 					if (itemTax && itemTax>0) {
 						
-						taxRate = itemTax/100 + 1;
+						taxRate = itemTax/100;
 						
-						itemTaxAmount = ((itemCost - (itemCost / taxRate)) * 100 );
+						itemTaxAmount = ((itemCost * taxRate) * 100 );
 						
 						itemTaxAmount = itemTaxAmount.toFixed(2);
 						
@@ -76,7 +76,7 @@ jQuery( function($){
 				}
 			}
 			
-			subtotal = itemTotal - tax;
+			subtotal = itemTotal;
 			
 			total = parseFloat(subtotal) + parseFloat(tax) - parseFloat(discount) + parseFloat(shipping) + parseFloat(shipping_tax);
 			
@@ -93,7 +93,7 @@ jQuery( function($){
 	
 	jQuery('button.add_shop_order_item').click(function(){
 		
-		var item_id = jQuery('select.item_id').val();
+		var item_id = jQuery('select.add_item_id').val();
 		
 		if (item_id) {
 
@@ -101,7 +101,7 @@ jQuery( function($){
 			
 			var data = {
 				action: 		'woocommerce_add_order_item',
-				item_to_add: 	jQuery('select.item_id').val(),
+				item_to_add: 	jQuery('select.add_item_id').val(),
 				security: 		params.add_order_item_nonce
 			};
 
@@ -109,12 +109,12 @@ jQuery( function($){
 				
 				jQuery('table.woocommerce_order_items tbody#order_items_list').append( response );
 				jQuery('table.woocommerce_order_items').unblock();
-				jQuery('select.item_id').css('border-color', '').val('');
+				jQuery('select.add_item_id').css('border-color', '').val('');
 			
 			});
 
 		} else {
-			jQuery('select.item_id').css('border-color', 'red');
+			jQuery('select.add_item_id').css('border-color', 'red');
 		}
 
 	});
diff --git a/classes/checkout.class.php b/classes/checkout.class.php
index 1bb76c9a050..6a758ea6d96 100644
--- a/classes/checkout.class.php
+++ b/classes/checkout.class.php
@@ -544,8 +544,7 @@ class woocommerce_checkout {
 					 		'variation_id' 	=> $values['variation_id'],
 					 		'name' 			=> $_product->get_title(),
 					 		'qty' 			=> (int) $values['quantity'],
-					 		'cost' 			=> $_product->get_price(),
-					 		'cost_ex_tax'	=> $_product->get_price_excluding_tax(),
+					 		'cost' 			=> $_product->get_price_excluding_tax(),
 					 		'taxrate' 		=> $rate
 					 	));
 					 	
diff --git a/classes/order.class.php b/classes/order.class.php
index a8d04f6538a..ca29c9a5fbd 100644
--- a/classes/order.class.php
+++ b/classes/order.class.php
@@ -192,7 +192,7 @@ class woocommerce_order {
 				
 			endif;
 			
-			$return .= ' - ' . strip_tags(woocommerce_price( $item['cost_ex_tax']*$item['qty'], array('ex_tax_label' => 1 )));
+			$return .= ' - ' . strip_tags(woocommerce_price( $item['cost']*$item['qty'], array('ex_tax_label' => 1 )));
 			
 			if (isset($_product->variation_data)) :
 				$return .= PHP_EOL . woocommerce_get_formatted_variation( $_product->variation_data, true );
diff --git a/shortcodes/shortcode-my_account.php b/shortcodes/shortcode-my_account.php
index 44b9ccecdb4..840d603880b 100644
--- a/shortcodes/shortcode-my_account.php
+++ b/shortcodes/shortcode-my_account.php
@@ -508,7 +508,7 @@ function woocommerce_view_order() {
 							
 							echo '	</td>
 									<td>'.$item['qty'].'</td>
-									<td>'.woocommerce_price( $item['cost_ex_tax']*$item['qty'], array('ex_tax_label' => 1) ).'</td>
+									<td>'.woocommerce_price( $item['cost']*$item['qty'], array('ex_tax_label' => 1) ).'</td>
 								</tr>';
 						endforeach; 
 					endif;