I'm not sure if this is a bug or just a configuration that I have missed. So I have categorized it as a support request until someone can confirm either way.
I am trying to apply a second tax (compounding) to a specific product class and not to others. I can only get the tax to apply to the order and not the items.
In order to have the second tax compounded I set the _Taxed line items_ to Tax. When I have in my cart one item of the class that require the second tax and an item that doesn't the second tax is calculated on top of the subtotal (for that one item, which is fine) and the total of the first tax (not just the part that applies to that one product but all items).
So to explain myself a little better here is an example in which I have in my cart a DVD ($5) which is taxable with 2 taxes (the PST is calculated on the product price and the GST on the product price plus the PST for this item) and a book to which only the PST is applied:
Here’s what I get
Subtotal: $19.00 PST (7%): $1.33 GST (5%): $0.32 (applied to $5 + $1.33) Order total: $20.58
As you can see, the GST is applied to Subtotal (only the DVD portion, $5) + PST (of both items) which is incorrect.
What we are hoping for:
Subtotal: $19.00 PST (7%): $1.33 GST (5%): $0.27 (applied to $5 + $0.35) Order total: $20.58
Where the GST is applied to the Subtotal (only the DVD portion, $5) and the PST (only to the portion relative to the DVD).
Comments
Comment #1
fp CreditAttribution: fp commentedChanging to bug report - perhaps it will get a little more attention?
Comment #2
fp CreditAttribution: fp commentedTurns out that the compounding for taxes in certain Canadian provinces (PEI, Quebec) is actually the reverse (PST applied on subtotal + GST).
I wonder though if there are still places where this tax compounding can be a problem?
Comment #3
TR CreditAttribution: TR commentedComment #4
mark@redhorseinteractive.com CreditAttribution: mark@redhorseinteractive.com commentedDid you ever did a solution to this.
Taxes are not compounded. Totals should be Original Price + (Original price + GST) + (Original Price + Provincial tax)... the tax module is compounding which is not correct.
A $100 item should be $114.98 Total after taxes in Quebec. (Price + 5% GST on price and 9.975% Quebec tax on price... i.e. $5 GST, $9.98 Quebec Tax + $100 price). We don't tax tax... yet /
The module is compounding things for a total of $115.47. The Provincial Tax is taxing the GST. Which is not right.
Provincial tax calculator here illustrated the point http://www.calculconversion.com/calcul-taxes-tps-tvq.html
That's a mouthful :S , but any pointer would be appreciated.
Comment #5
TR CreditAttribution: TR commentedThis issue is currently closed, and has been for five years, and is not the same as what you describe. Please open a new issue if you have a new problem, and set your version number appropriately (I highly doubt you're running Ubercart 6.x-2.2 ...) and provide detailed steps to reproduce the problem.
Ubercart does NOT apply taxes to other taxes UNLESS YOU CHOOSE to do so in your tax configuration. For each tax you define, you have the option of what to apply it to (including other taxes), and in what order to apply it.
I tested this on my site, and using a 5% GST and a 9.975% PST on a $100 order shows me a total tax of $114.98, as expected, if I configure those two taxes to apply only to products.