Problem with Store credit and taxes.

I hust made a test and it turns out that if a customer uses store credit for a purchase, the taxes are calculated based on the sub total and not the discounted price, But when I use reard points to get the same kind of discount the taxes are calculated appropriately. Any ideas on how to fix this? Seems wrong to charge someone who has $50 worth of store credit taxes on purchase of $0.

Dont quite understand your post fully

Store Credit is just like cash

The store must still charge tax on it's products if tax applies to the buyers location.

I think what he is saying, is if the store credit reduces the cart balance to 0, taxes are still charged on the original amount before credit.

This doesnt sound right, even if the credit reduced the balance to something higher than 0, tax should be calculated on the final amount.

I have same problem.

if I put the store credit at the 2nd of order total just follow the sub total.

then the 3rd item tax still calculate tax base on the subtoal, rather than sub_total - credit

Store credit is literally a payment and should come after tax etc before final total

I can see the logic. Store credit is if you like, refunded money from a previous purchase. A previous purchase where tax would have already been charged.

Store credit should be used to reduce the final cost to the customer. It should not be used as a discount. A discount would in some countries, reduce the subtotal before tax. Store credit would not.

Hi
I have the same problem too
has anyone found a solution?
Thank you

Store Credit is akin to Cash or a Gift Voucher.

Let's say goods added to cart = £120 (e.g. £100 + £20 tax)

I have £1000 store credit, so I use £120 of it to pay for the goods, leaving me with £880

So cart will look like this

Sub Total £100
Tax £20
Total £120
Store Credit £120
Balance £0

In Italy, the TAX should be calculated on the total of the order, therefore - (credit store), as if it were a discount