Compound Tax (often refereed to as Stacked Tax or Tan-On-Tax) is a tax calculation where the total cost of the product or service is taxed at one rate, and then the total of that amount, including the first tax amount, is taxed a second time. In Quebec and Prince Edward Island (PEI) in Canada, the General Sales tax is calculated and added to the price of the product. Then the Quebec or PEI Provincial Tax rate is calculated for that total amount, which is added to the previous total.
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Create the 2 Taxes that will be added the Tax Category
Info title NOTE For more information on creating Taxes please see the Taxes topic
Create the Tax Category that will hold both Taxes created in (1) above and add both Taxes to the Tax Category
Info title NOTE For more information on creating a Tax Category please see the Tax Category topic
- The Tax Category - Taxes module should now look very similar to below, with both Taxes having a Stacked Order Index of 0.
The Stacked Order Index determines the
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