Post
by SXGuy » Fri Aug 31, 2012 5:21 am
Can i be the first to say that what you want, may not actually be legal in your country, the tax applied is always based on the net total, i.e before tax. Which is why your coupon discounts the sub total before tax is applied.
It IS working for you both, what you dont get is how it should be applied.
If you add the discount after tax, then the amount of tax does not correctly relate to the sub total.
And finally, why in the hell would you want to pay more tax to your country on sales and take less for yourself? It doesnt make sense to anyone. Ill even prove it to you.
First and Correct method
Sub-Total:$46.43
46.43 - 10 discount = 36.43
36.43 * 3 / 20 = 5.46 (GST 15%)
total = 41.89
What you want
Sub-Total: $46.43
GST (15%): $6.96
Coupon: $-10.00
Total: $43.39
43.39 * 3 / 20 = 6.51
46.43 * 3 / 20 = 6.96
you just overcharged the customer tax of 0.45 all because you discounted the grand total, not the sub total.
The amount of tax you charge, is not for you, or anyone else to decide what is best, it is a goverment regulation that you must follow to the letter, infact you can get in serious trouble if your ever caught over charging tax.
I strongly advise you read up on your countries rules concerning tax and apply it correctly.