Double taxing

[Derek Atkins]

Sebastien Daniel <sebastien.daniel at nexwave.ca> writes:

> I'm not sure where I should address this, or who I should
> ask...(beg)... for this addition, but here is a particular situation
> from Provinces in Canada, where we have two cumulative taxes.
> Here is how it works:
>
> *Taxes:*
> TPS (5%) = federal tax
> TVQ (7.5%) = provincial tax
>
> The total taxation is 12.875% (TPS*TVQ, not TPS + TVQ)
>
> We need to account for both taxes in different accounts, and up to
> there we have no problem, the problem starts with INVOICES.
> We can only charge one tax, and the only (non-viable) solution I have
> found was to charge TPS&TVQ as one tax at 12.875%... but that
> complicates things when comes time to account both tax accounts.
>
> Would it be possible to add a functionnality to GNUcash, for invoices
> and tax-tables, where you can create a new tax table with cumulative
> taxes?

This functionality absolutely already exists, and I've discussed on the
gnucash-user list multiple times how to do it.  Please go check the
archives.

In short, create a tax table with two entries:

  Tax1 (x%)      x%
  Tax2 (y%)      (1+x%)*y%

So in your case:

  TPS (5%)       5%
  TVQ (7.5%)     (1+5%)*7.5% = (1.05)*7.5% = 7.875%

Works great!

-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
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