Re: Users - tax functionality

Posted by David E. Jones on
URL: http://ofbiz.116.s1.nabble.com/Users-tax-functionality-tp138468p138473.html



Daniel Kunkel wrote:
> Although the software currently calculates tax on an item by item basis,
> I do not believe that this is standard practice, even in the United
> States.
>
> Instead, could the functionality be changed to perform the aggregated
> tax calculations universally, as I believe that this is also an
> acceptable way of calculating taxes in the United States?

Actually this _is_ a standard practice in the USA. In fact, those who don't consider tax on a per product basis are most likely not calculating their sales taxes correctly. No state in the country has sufficiently simple sales tax laws for that (except those with no sales tax of course...).

Physical stores often get away with charging a single rate, and they just over-tax their customers so the government doesn't complain. In conversations about this with retailers they accept that as a practice and when a customer knows about a tax exception they just refund the taxes on a case by case basis for each customer that complains.

For online retailers it is a bit of a nightmare. This is why rather expensive packages like TaxWare exist.

To get an idea of how much fun it is there are some good materials related to details in this area for TaxWare and the ZipSales tax database.

-David
 
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