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Re: [ic] Re: Negative Tax - bug?


Quoting Dan Bergan (suppressed):
> On 10/30/07, Dan Bergan <suppressed> wrote:
> > On 10/30/07, Mike Heins <suppressed> wrote:
> > > Quoting Dan Bergan (suppressed):
> > > > On 10/16/07, Dan Bergan <suppressed> wrote:
> > > > > I'm having an issue where negative sales tax amounts are computed.
> > > > > The issue arises when there is a discount on the entire order, and the
> > > > > products in the cart are nontaxable.
> > > > >
> > > > > A detailed description and potential solution is here:
> > > > > http://www.icdevgroup.org/pipermail/interchange-users/2007-May/047410.html
> > > > >
> > > > > This issue was also found here (with no resolutions):
> > > > > http://www.icdevgroup.org/pipermail/interchange-users/2005-September/043923.html
> > > > >
> > > > > Is this a bug?  It doesn't seem like a negative sales tax should be valid.
> > > > >
> > > >
> > > > Back in May, Carl had what looks to be a good solution for this
> > > > problem, which I am going to implement for my installation (see
> > > > below).
> > >
> > > It is unclear if it should be a bug at all. If you wanted to implement
> > > refunds, you would need negative tax.
> > >
> > > The bigger problem would seem to be the negative amounts.
> > >
> > > In any case, I have set up the ability to exclude negative tax
> > > amounts with:
> > >
> > >         Pragma  no_negative_tax
> > >
> > > That is in the latest CVS.
> > >
> >
> > Mike -
> >
> > Ahh... refunds -- I hadn't thought of that!  :-)
> >
> > For refunds, the taxable sales amount would be negative, so the tax
> > would calculate as a negative.  In the case above (non-taxable
> > products with a discount), the taxable amount should still be zero
> > (not negative).
> >
> > I currently don't use Interchange for refunds, but that doesn't mean I
> > never will!  So, I think I'll have to ponder this some more and dig
> > deeper into the code.
> >
> 
> I think this might be more of a question about sales tax law.  Should
> a ENTIRE_ORDER discount reduce the taxable amount?

Without doubt.

> 
> The only mention I have found when searching sales tax documents are
> coupons for individual items, and percent off of all items.  In the
> case of ENTIRE_ORDER the actual sale prices of the individual items do
> not change, so my client reports that number to their state as the
> taxable amount.  My client treats this type of discount like a gift
> certificate -- it is applied after the tax is calculated.

That is simply wrong. The user is over-paying taxes.

> Of course, this is just my client, in one state and in the US.
> 
> Would it work to have a catalog variable to determine if an
> ENTIRE_ORDER discount should be applied pre-tax or post-tax?

It won't ever be applied post-tax on my watch.

If the order total is reduced, the tax is reduced. A gift-certificate
is pre-purchased, and is paid for.

-- 
Mike Heins
Perusion -- Expert Interchange Consulting    http://www.perusion.com/
phone +1.765.647.1295  tollfree 800-949-1889 <suppressed>

There's nothing sweeter than life nor more precious than time.
-- Barney
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