VAT - Multi
The VAT - Multi tax method enables retailers to apply multiple VAT taxes on a single transaction.
When selected, the Tax 2 field is used when calculating the total tax. Total Tax with this option enabled should equal P$+(T1$+T2$). In short P$T$= P$+(T1$+T2$).
In this example a 10.00$ Price with Tax item was placed on the receipt. Tax1 is 10% and Tax 2 is 2.5%. The price before tax on this item is 8.89. Multiply 8.89 by 10% and get 0.89 as Tax 1 amount. Multiple 8.89 by 2.5% to get Tax 2 amount of 0.22. Add this item's Tax 1 and tax 2's amounts for a total of 1.11. Then add the items base price of 8.89 plus the 1.11 and the result is 10.00$.
You can view the breakdown of the tax amounts by going into Transaction Details and clicking the Taxes tab.
Calculate Tax 2 from Tax 1
This option is currently only needed by retailers operating in certain specific regions, such as Kerala, India. For example, the state of Kerala has a tax system that adds an additional tax that is calculated off of the first VAT tax.
Here is how the calculation of tax 2 from tax 1 is handled:
Then Tax1$ and Tax2$ are added to the item price.