Re: NEED taxes on taxes here

[Dieter S. <dsi...@sq...>]

Tax on tax can be managed by adding the tax to the tax.

i.e first tax @ 7% second tax @ 8%
8% would effectively be 8.56%

If taxes are tax on tax as well as tax included you'll have to adjust the
tax rates accordingly.

Tax included applies to all taxes and not just one or the other.


Dieter Simader    http://www.sql-ledger.org   (780) 472-8161
DWS Systems Inc.     Accounting Software       Fax: 478-5281
=========== On a clear disk you can seek forever ===========

On Sat, 2 Jun 2001, Andre Felipe Machado wrote:

> Hello, Dieter:
> I just had send out messages to many brazilian linux lists asking for 
> accountant help and found your message below.
> 
> Here, in Brazil, we have a real  tax hell.
> We have TAXES ON TAXES at different points of price setup process, 
> feeding multiple taxes accounts to balance at month end.
> 
> I am not an accountant, so I can not explain right this complex subject. 
> But in order to other people help to customize tables, sql-ledger will 
> have to allow multiple taxes on taxes, included and on top, at different 
> points of price.
> 
> Two significant taxes here: IPI is "on top", aaaaaaannnnnd ICMS "is 
> included".
> And they are only two of many, many other taxes, some included, other on 
> top of others!
> Cascading taxes!!! 
> And these taxes depends on WHAT product or service is to be invoiced.
> 
> Please, are there other brazilian people in this list?
> Any accountant to help?
> Many thanks.
> Andre Felipe Machado
> 
> 
> 
> >>>>>>>>>>>>>>>>>> Mensagem anterior <<<<<<<<<<<<<<<<<<
> 
> No dia 28/05/01, 13:58:06, Dieter Simader <dsi...@sq...> 
> escreveu o seguinte sobre o tema About Taxes:
> 
> 
> > Taxes are calculated differently if included in price or shown on top.
> > i.e.  $100 item, taxable at 7%
> >  tax included -> net price is 93.46, tax portion is 6.54
> >  tax on top -> net price is 100.00, tax is 7.00
> 
> > multiple taxes are always additive and not calculated tax on tax.
> > So, the same $100 item at 7% and 8%
> >  tax included -> net price is 86.96, tax is 13.04
> >  tax on top -> net price is 100.00, tax is 15.00
> 
> 
>