Thanks,
But yes it's weird to pay a tax on a tax, isn'it?
Jacques
From: "Matt Warnock" <mwarn...@ridgecrestherbals.com>
I'm speaking outside my personal experience here, but in the US, there
are many industries that have an excise or similar tax applied to
particular products. Gasoline, tires, and cigarettes come immediately
to mind, just because they have signs disclosing the excise tax. If the
manufacturer sells at retail, a sales tax may also be applied, which
would be a tax-on-tax. It isn't really rare, just unusual for most
people. Hotels often pay a room tax, but I can't remember if they
collect sales tax on top (goods or services)?.
On Wed, 2010-04-07 at 15:15 -0800, Bob Morley wrote:
Jacques Le Roux wrote:
>
> Hi BOb,
>
> Just curious, what is exatly tax-on-tax, is this really existing
> somewhere?
> I remember a colleague speaking about legal issue with this kind of
> things, at least in Europe (we had a such thing once in France
> in nineties and it was a real concern)
>
> Thanks
>
> Jacques
>
Hey Jacques,
To be honest the person I was talking about this requirement for would have
been more of an expert than me so I took him at his word that it existed. I
did a quick google and came up with a reference for support for this feature
in ZOHO
(http://blogs.zoho.com/general/support-for-stacked-or-compound-taxes-in-invoices)
-- interesting enough the example they site is in my own Canada -- in some
provinces.
In Canada we have two taxes in most provinces. A Goods and Services tax (5%
where I am) and a Provincial tax (8% where I am). So if I were to set these
up in Ofbiz I would setup two tax authorities (a federal and a provincial)
with appropriate Geo and the TaxAuthorityRateProduct for the two rates.
Anyway, apparently in some provinces (Quebec is the one they site) it is a
compound tax where ... GST = Total * GST_RATE and PST = (TOTAL + GST) *
PST_RATE. Apparently Quebec has 7% PST which (again) is news to me. In
Ontario (where I am) I do not believe our PST is a compound tax rate ...
In my head I also figured that there may be places that have "bad stuff"
taxes like Cigarette or Gas taxes that are VAT taxes but they also may have
a standard sales tax that would apply as a compound/tax-on-tax tax.
--
Matt Warnock <mwarn...@ridgecrestherbals.com>
RidgeCrest Herbals, Inc.
