Tax is calculated on pre-discount amount

@USRFobiwan

Your fix needs a couple of changes to work with 1.7
Your fix did not sort my tax issues - my issues arise when I have a discount at product level + discount at subtotal level + taxable & non-taxable items.

I can't give an example as I removed the fix from my site, sorry. But essentially the tax was wrong !

I think this has something to do with the construction of 170. I believe NC team tried to fix the discount issue and altered the discount code in such a way that our fix messed up. As a side-note; Our fix was never tested on 170, ony on 150 and 160 versions. But it is good to know how it held up on 170.

thanx for the feedback Miles.

Your fix solved my problems, discount is withdrawn from subtotal and the tax is calculated on (subtotal-discount) exactly as it should be.

I run 1.60 version of nopCommerce and thanks to your fix I can now use discount in my shop :)

Br
Joakim

Ok, so I just got a chance to install 1.8 and see if this has been fixed - and, er, well - it seems not...

Here's an example

I've used a 25% discount applied to Order Total via a discount code
I have used a 10% tax rate to keep it simple

Products Sub-Total : £100.00 (CORRECT)
Tax 10% : £10.00    (WRONG - TAX SHOULD COME AFTER DISCOUNT)
Discount 25% : -£27.50    (WRONG - DISCOUNT SHOULD BE ON PRE-TAX AMOUNT)
Order Total: £82.50   (CORRECT)

Surely it should be

Products Sub-Total : £100.00 (CORRECT)
Discount 25% : -£25.00    (CORRECT)
Tax 10% : £7.50    (CORRECT)
Order Total: £82.50   (CORRECT)

If someone can confirm I'm not losing the plot here I'd appreciate it. I can't give an invoice to client saying the tax is 10% when the invoice shows a figure that is clearly not 10%, even though the overall total is correct.

thoughts anyone? NOP team ?

anyone care to comment ?

If you are dealing with non-business customers (private persons only), the tax calculation that nop currently has implemented, works fine.
If you go to a regular shop and have a coupon, you will get the discount over the product price including VAT.

The difference in how you want to have it implemented is just a matter of how you book it in your administration. In the end, the amount the customer has to pay is the same. And this is why it also works fine for B2B.

I'm with you on the fact that you need to change the VAT amount on your invoice. So this should be changed.

It really doesn't work fine when selling to end customers, the calculations are incorrect, the tax is based on the amount befpre discount, which is in violation of the law in my country atleast, I need to provide accurate calculations to my end-customers, and this implementation cannot do that.

Thankfully I got a fix for this through the community.

I hear you - so NOP is currently only for the use non-business customers then - eek

Surely what I'm suggesting would work for both non-business AND business customers.

Seems to me this needs to get sorted. I've just spoken to an Accountant here in the UK and where tax is involved tax should be applied post discount. I'm not sure how that applies to the rest of the World.

Basic shopping cart math is pretty fundamental to an ecommerce solution...no ?

jockesoft wrote:

Is this the fix that didn't work under 1.7 (and I'm guessing 1.8)

miles wrote:
thats correct.

Or like this:

Products Sub-Total : £100.00 (CORRECT)
Discount 25% : -£25.00    (CORRECT)
Sub-total: £ 75.00
Tax 10% : £7.50    (CORRECT)
Order Total: £82.50   (CORRECT)