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edwardkay
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February 2, 2024 at 8:25 am
Hi – any update on https://eventespresso.com/topic/100-discount-still-charging-tax/ please? The promotions and discounts add-on doesn’t seem to have received any updates since this issue was reported. Thanks
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Rio
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February 4, 2024 at 11:22 pm
Did talk to our tEEm and this is what was discussed.
This is working as expected. One of the primary reasons for the “Promotions affect taxes” setting is because in some countries/regions discounts can not be applied to taxes, so taxes have to be applied first before any discounts. So if the tax rate is 15% and you sell a $100 item, then there is $15 of tax regardless if you apply a 100% discount. Even if a company wanted to have a discount that results in the customer not paying anything, they would still have to pay that tax. Bottom line, is if you want to offer a 100% discount and NOT have the customer pay tax (meaning they don’t pay anything) then you need to set the “Promotions affect taxes” input to “YES”. ie:
https://monosnap.com/file/NpMdgFWybYlTFGqP0MBDyjR0nDZ3wG
$100 + 100% discount (-$100) = $0 + 15% tax = $0
as opposed to:
$100 + 15% tax = $115 + 100% discount (-$100) = $15
Thanks
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edwardkay
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February 6, 2024 at 7:03 am
Ah, thanks! That makes sense, and now works as we need it to.
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