Tax on Tax

artping

I am trying to setup tax on tax in Nav 3.70 and am having no luck. I setup all the accounts and jurisdictions. I ticked the calculate tax on tax box on the tax jurisdiction form. On the tax area form, I placed 1 and 2 in the calculation order. I created a sales order and it calculated the tax seperately.

Expected to see
Selling Price 10,000.00
Tax 5% 500.00

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Sub total 10,500.00
Tax 7.5% 787.50

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Total 11,287.50

Actual

Selling Price 10,000.00
Tax 5% 500.00

Tax 7.5% 750.00

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Total 11,250.00

Does anyone have any ideas on how to fix this issue?

ara3n

The program starts calculating tax for the jurisdiction on the line with the highest calculation-order number. Then it calculates tax for the second highest, and so on.


So what order have you setup?

I would switch the order Number

Deep

You can use the tax jurisdisctions in the tax area form.

Create a new tax jurisdiction (under with "Tax on Tax" is governed), say "TAXONTAX"
Define the required "Tax on Tax" percent in Tax Jurisdiction>Details.
In the tax area, on the first calculation order, use the jurisdiction with the basic tax rate.
In the second line, with next calculation order, use jurisdiction=TAXONTAX, use formula=previous line no. (i.e.1) and "yes" over "Include tax base".

Define the required "Tax on Tax" percent in Tax Jurisdiction>Details.