Suggested transaction tax system

[Paul Tatham]

"James A. Treacy" wrote:
> 
> On Wed, Nov 15, 2000 at 08:51:14PM +0000, Al B. Snell wrote:
> > On 15 Nov 2000, Derek Atkins wrote:
> >
> > > What about places where you have multiple taxes (taxes on taxes,
> > > e.g. the Canadian GST), hidden taxes (e.g. US Gasoline), or split
> > > taxes (income tax split across multiple US States)?
> >
> > I'm not sure about the details of Canadian GST. Anyone care to enlighten
> > me? I imagine it can just be modelled as one tax, though; if there's a
> > function that converts the amount you pay to the amount you get charged in
> > tax, then we can handle it.
> >
> GST = Goods and Services Tax
> The rate is 7%, but how it is applied depends on the province. Most
> apply it on the cost of the good (or service). Others, like Quebec,
> apply it to the cost + provincial tax. Yes, there can be tax on a
> tax, as remarkable as that sounds. So, in Ontario we pay 15% tax,
> but in Quebec the rate is 15.56%.
> 
> --
> James (Jay) Treacy
> treacy@debian.org
> 
Right, insofar as there are differences among the Provinces. Actually,
in Quebec the Taxe de Vente de Quebec (TVQ) is 7.5% but it is applied to
the total of the original cost of goods/service plus the GST of 7.0%. A
$100 item will end up costing $115.03 and the combined rate is 15.03%.
Fractions of a cent are rounded up. For example:

Loki Game costs $54.95
GST 7%            3.85   
Sub-total        58.80
TVQ 7.5%          4.41
Total           $63.21


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