thread Sales tax not calculating correctly on invoice. in Archived Discussions (Read Only)

Sales tax not calculating correctly on invoice.

Maryadams — Sun, 01 Apr 2018 17:05:20 GMT

When I add a discount other than free shipping which is set to not be taxable, the sales tax does not calculate correctly!

example:

invoice for 2 items for $5 each equaling $10 then 1 item for $1 all three items taxable at 10%. Add $4.50 shipping. Total comes to $16.60, where tax equals $1.10. I add a $5 discount for a free item and the tax turns into $.74 and the total is $11.24. It should be $.60 tax and total of $11.60. I’ve double checked all my setting for taxes and tried many different things to fix this. Please help.

Re: Sales tax not calculating correctly on invoice.

Chad — Thu, 05 Apr 2018 20:43:34 GMT

Hello @Maryadams, I can help explain this. Currently discounts are applied before the tax.

Since you have a $5.00 flat discount it will apply to all of the items in the sale including the shipping. The $11.24 you see is correct since your shipping item isn't taxed.

If you still have questions please let me know!

Re: Sales tax not calculating correctly on invoice.

Maryadams — Thu, 05 Apr 2018 22:35:05 GMT

How do I apply the discount and it calculate correctly?

Re: Sales tax not calculating correctly on invoice.

Tom — Fri, 06 Apr 2018 22:34:22 GMT

Hi @Maryadams, thanks for circling back. Are you looking to collect tax on the value of the $5.00 item, even though no funds are collected for it? If so, you may want to touch base with a tax advisor or professional on how to proceed.

If that doesn't clear things up, I'd suggest getting in touch with our CS Team directly—they'll be able to take a deeper dive into the specific invoice and make sure all off your settings are properly configured.

Re: Sales tax not calculating correctly on invoice.

Maryadams — Sat, 07 Apr 2018 01:48:25 GMT

Thanks for replaying. I guess I will have to get in touch with them because I’m not trying to collect tax on the discounted item.