Posted by
Florin T.PATRASCU (work) on
URL: http://ofbiz.116.s1.nabble.com/Users-tax-functionality-tp138468p138478.html
Hi there,
Since this topic is something which we had to deal with for one of our
customers, I am relaying an email from one of my team mates having
problem to post his reply to this list via the newsgroups, so here it is:
-------- Original Message --------
Subject: Re: Users - tax functionality
Date: Tue, 11 Apr 2006 11:43:32 -0400
From: Cezar Mihaila <
[hidden email]>
To: OFBiz Users / Usage Discussion <
[hidden email]>
Newsgroups: gmane.comp.java.ofbiz.user
References: <
[hidden email]>
<
[hidden email]> <1144768377.3311.255.camel@A64>
Hi,
It seems that there are certain locations, such as Germany, where is a
common practice to apply the overall sales tax on an order/ invoice
based on the "main" product/ line item in the transaction.
The "main" product is not necessary the most expensive one.
For example, if you have an order like
1. Item A 50 euro
2. Accesory to Item A 20 euro
3. Service fees for Item A 60 euro
and VAT for item A is X% while VAT for Service fees is Y%, then -
somehow in an arbitrary way - apply X% tax to the whole order.
We had the explicit requirement to implement such functionality for our
client but we've managed to convince him that calculating taxes by line
items is also acceptable from the German accountants point of view.
The client wasn't happy but accepted the solution.
We found it's easier to make the client change his mind then making the
OfBiz adjustments for dealing with such business logic.
Cezar
Jacopo Cappellato wrote:
> Hi Jacques,
>
> we (in Italy) too may have several tax rates in the same invoice; the
> difference is that in Italy the amount of the tax is computed against
> the total sum of the amounts of the items with the same rate.
> For example, if in the same invoice I have two books (book_a and book_b)
> and two computers (computer_a and computer_b):
>
> productId | quantity | unitPrice | amount | tax rate
> ----------------------------------------------------
> book_a | 1 | 10 | 10 | 5.5%
> book_b | 1 | 20 | 20 | 5.5%
> computer_a| 1 | 997 | 997 | 19.6%
> computer_b| 1 | 1994 | 1994 | 19.6%
>
> OFBiz calculates the sales tax for each item in this way:
>
> book_a: 10 * 0.055 = 0.55$
> book_b: 20 * 0.055 = 1.10$
> computer_a: 997 * 0.196 = 195.41$
> computer_b: 1994 * 0.196 = 390.82$
>
> In Italy we calculate the sales taxes in this way:
>
> tax 5.5%: (10 + 20) * 0.055 = 1.65$
> tax 19.6%: (997 + 1994) * 0.196 = 586.24$
>
> As you can see:
>
> the computer taxes calculated by OFBiz are:
> 195.41 + 390.82 = 586.23
>
> while the computer tax calculated in the 'Italian' way is:
> 586.24
>
> Jacopo
>
>
> Jacques Le Roux wrote:
>
>> Daniel,
>>
>> I'm no sure of that, as for example here in France (and I know it's the same at
>> least in England and Finland) we may have several tax rates (may be differents
>> per products). For example it' not the same ratio for Computer (19.6%) and book
>> (5.5%) ...
>>
>> Jaques
>>
>>
>>
>
>
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