As I understand it, tax works like this in Quebec:

1. GST of 5% (a sales tax) is applied to every product
2. QST of 8.5% (another sales tax) is applied to the total value of the product after the GST is added.

This is described in excellent detail in #1251444: Add tax depending on product type. For a $100 purchase, there would be $5.00 of GST and then 8.5% more of QST against the $105 total after GST. So the total GST would be 8.5 % * 105, or $8.93.

However, I can't find a way to do this with sales tax. It works with VAT just fine. If I attempt it with two tax types, I get the attached result on checkout. (A line item of $5.00 and a line item of $8.50)

The Wikipedia article on Canadian Sales Tax may be helpful.

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rfay_dell_gazelle_Selection_065.png17.39 KBrfay

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rfay’s picture

rfay
he,him
Primary language English
Location Palisade, CO, USA
commented
Title: Cumulative Sales Tax Calculation (as with Canadian Sales Tax) » Cumulative Sales Tax Calculation (as with Quebec Sales Tax)
Priority: Normal » Major

Marking major, as at least one Canadian is a bit frantic about this. However, based on the Wikipedia article above, it looks like this is an issue only for Quebec and Prince Edward Island.

rfay’s picture

rfay
he,him
Primary language English
Location Palisade, CO, USA
commented

One potential workaround is just to show a single 13.925% GST+QST tax (for items that take the QST) and a separate 5% GST tax for items that don't get the QST.

rfay’s picture

rfay
he,him
Primary language English
Location Palisade, CO, USA
commented

But the best workaround, and one that still leaves everything itemized, is to use the *effective* QST tax rate, which is 8.925%. See http://en.wikipedia.org/wiki/Sales_taxes_in_Canada

I posted a screencast on how to do this at http://vimeo.com/29725767

rfay’s picture

rfay
he,him
Primary language English
Location Palisade, CO, USA
commented
Priority: Major » Normal

Related: A user is attempting to make a VAT which is *not* cumulative and cannot. So they want two different VAT taxes applied against the original value and can't get it to happen. I tried and can't get it to work either.

Opened #1295318: Non-cumulative VAT taxes

rszrama’s picture

rszrama commented
Status: Active » Closed (fixed)

I believe this has been resolved by http://drupal.org/project/commerce_canadian_taxes.

rszrama’s picture

rszrama commented
Issue summary: View changes

Added wikipedia link

San108’s picture

San108 commented

Hi Experts,

I need your help in deriving a formula for calulating three taxes with a comination of cumulative and incusive tax.

Here are the examples with expected result. Please let me know the formula on how to get the given result.

Example1:
Total Product Value (V) = 1000 (with inclusive of all 3 taxes and below mentioned cumulative combinations)
Tax1 rate is 10% and Tax1 is inclusive.
Tax2 rate is 10% with Tax2 is inclusive and cumulative of Tax1
Tax3 rate is 10% with Tax3 is inclusive and there is no cumulative of Tax1, Tax2
Expected Results are:
Tax1=76.34
Tax2=83.97
Tax3=76.34
Let me know formula to derive above values?

Example2:
Total Product Value (V) = 1000 (with inclusive of all 3 taxes and below mentioned cumulative combinations)
Tax1 rate is 10% and Tax1 is inclusive.
Tax2 rate is 10% with Tax2 is inclusive and cumulative of Tax1
Tax3 rate is 10% with Tax3 is inclusive and cumulative of Tax2
Expected Results are:
Tax1=75.70
Tax2=83.27
Tax3=84.03
Let me know formula to derive above values?

Thanks in advance.

Regards,
San