Sales Tax - Multi, VAT - Multi
When the Tax Method setting (Node Preferences > Taxes > General) is set to Sales Tax - Multi or VAT - Multi, Prism tracks up to two taxes (Tax1 and Tax2). Each tax can have a different tax code, tax area and/or tax rule.
Sample Admin Console > Node Preferences > Taxes > General:
Preferences related to Multi Tax
| Preference | Description |
|---|---|
| Include 1st tax when calculating 2nd tax on price | (Only available if Tax Method is set to Sales Tax - Multi) If selected, the 1st price will be included when calculating a 2nd tax on price. This is for tax areas where two sales taxes are applied to retail sales, sometimes separately, sometimes combined. |
| Calculate Tax 2 from Tax 1 | (Only available if Tax Method is set to VAT - Multi) This option is currently only needed by retailers operating in certain regions (e.g., Kerala, India). This option adds an additional tax that is calculated using the first VAT tax. Tax2$=Tax1$*Tax2% Then Tax1$ and Tax2$ are added to the item price. P$T$= P$+(T1$+T2$) |
VAT - Multi Notes
The VAT - Multi tax method enables retailers to apply multiple VAT taxes on a single transaction.
When selected, the Tax 2 field is used when calculating the total tax. Total Tax with this option enabled should equal P$+(T1$+T2$). In short P$T$= P$+(T1$+T2$).
Example
In this example a 10.00$ 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$.
You can view the breakdown of the tax amounts by going into Transaction Details and clicking the Taxes tab.
Calculate Tax 2 from Tax 1
This option is currently only needed by retailers operating in certain specific regions, such as Kerala, India. For example, the state of Kerala has a tax system that adds an additional tax that is calculated off of the first VAT tax.
Here is how the calculation of tax 2 from tax 1 is handled:
Tax2$=Tax1$*Tax2%
Then Tax1$ and Tax2$ are added to the item price.
P$T$= P$+(T1$+T2$)
DOCUMENT_TAX_BREAK Table
The DOCUMENT_TAX_BREAK table is a special database table that has data related to multi-tax. When multi-tax is enabled (Multi Sales Tax or Multi VAT), Prism tracks Tax1 and Tax2 information (e.g., TAX1_TAX_CODE, TAX2_TAX_CODE) Prism populates the DOCUMENT_TAX_BREAK table with tax area tax code, tax percent, and sum of tax amt for each tax. The DOCUMENT_TAX_BREAK table takes into account tax1 and tax 2 so if they have different tax areas, tax codes or tax percentages, two rows will be populated.