Taxes combined with Promotions
Posted: Sun Jan 20, 2013 12:52 pm
Dear BLC community,
I'm currently evaluating BLC and so far, everything looks great. But there's one question that I have and it might be very trivial to answer it, but I just haven't found the right documentation to it.
Here's the use case:
I want to offer promotions - let's say, a 20% discount on the order level. A customer with a cart full of items valued 1000 bucks (original price) checks out. I have a simple tax module with a default tax of 8%. Fees are not taxed.
When I make the calculation on paper, i get the following result:
1000 CHF - 20% discount = 800 CHF excl. sales tax + 8% sales tax = 864 CHF incl. sales tax. + 20 CHF shipping = 884 CHF total
When I look at the BLC cart and the checkout process, it looks like that:
1000 CHF - 20% discount = 800 CHF excl. sales tax + 8% sales tax (of 1000???) = 880 CHF incl. sales tax + 20 CHF shipping = 900 CHF total
So my question boils down to: Shouldn't the sales tax be computed on the discounted price instead of the original price? With the latter calculation, the sales tax ends up to be 10% of the discounted price...
Many thanks for your answers and advice,
Stephan
I'm currently evaluating BLC and so far, everything looks great. But there's one question that I have and it might be very trivial to answer it, but I just haven't found the right documentation to it.
Here's the use case:
I want to offer promotions - let's say, a 20% discount on the order level. A customer with a cart full of items valued 1000 bucks (original price) checks out. I have a simple tax module with a default tax of 8%. Fees are not taxed.
When I make the calculation on paper, i get the following result:
1000 CHF - 20% discount = 800 CHF excl. sales tax + 8% sales tax = 864 CHF incl. sales tax. + 20 CHF shipping = 884 CHF total
When I look at the BLC cart and the checkout process, it looks like that:
1000 CHF - 20% discount = 800 CHF excl. sales tax + 8% sales tax (of 1000???) = 880 CHF incl. sales tax + 20 CHF shipping = 900 CHF total
So my question boils down to: Shouldn't the sales tax be computed on the discounted price instead of the original price? With the latter calculation, the sales tax ends up to be 10% of the discounted price...
Many thanks for your answers and advice,
Stephan