what is priority of tax?

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1 year 6 months ago #351867

hi
1-i want to understand which is priority of tax, tax category in product configuration or tax category in payment method ? for example in payment method we select taxA and in the product category we select taxB . which tax is calculate in the checkout? (i can not test that because i can not use standard paypal payment method)
2- What is use case of percentage setting in payment method and what is different between percentage and tax category in the payment method? both of them added some percentage of price on the total price.is it not? not:
i study in www.hikashop.com/support/documentation/3...-method.html#generic
Percentage : The percentage allows you to define a payment fee depending on the total amount of the products in the cart.
Tax category : Select among your tax category, the category you want apply on your payment method cost.
but i can not understand the different of these two setting.

Last edit: 1 year 6 months ago by sadaf3d.

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1 year 6 months ago #351878

Hi,

1. Both are used. taxA is used for the payment fees (you need to set something in either the "price" or the "percentage" settings of your payment method, otherwise, the payment fees will be 0 and the taxes on it will be 0 too). tax is used for the product price.

2. For example:
- you product costs 10€
- you configure a tax of 10%
- the product price is 10 + 1 of taxes = 11€
- you configure a payment fee of 10% with a tax of 20%
- the payment fee will be 1€ (10% of 10€) + 0.2€ of taxes
On your checkout you'll have:
- a subtotal without taxes of 10€
- a payment fee of 1€
- a 10% tax of 1€
- a 20% tax of 0.2€
- a full total of 12.20€

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1 year 5 months ago #351893

thank you Nicolas.
i understand what you say and thank you for clear example.
3-is it possible say me when i must use tax category field in product configuration page and when i must use tax category field in payment method? i need describe to me an example or possible use case.
and
4-if in my hikashop all product has same tax , is it logical to use Percentage in payment method instead of tax category field in product?

Last edit: 1 year 5 months ago by sadaf3d.

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1 year 5 months ago #351894

Hi,

3. Wasn't the example I provided in my previous message illustrating such a case ? Basically, when you need to charge a different tax rate on the payment fees than on the products, you want to be able to configure a tax category in the payment method.

4. No. If all products have the same tax just make sure you have the same tax category configured in all the products (the default tax category" is preselected when creating products, and it's also possible to run a massaction to make sure all the products have the same tax category).
Then, create a tax rate via the "manage tax rates" button of the System>Taxes menu.
And finally create a tax rule in System>Taxes to link the tax category selected in your products with the tax rate you created.
I recommend doing it that way rather than trying to use payment fees for taxes.
That way, when you go in the "manage tax rules" area in the future, you'll be able to see how much tax was paid by your customers based on the order statuses selected and based on the start/end dates selected in the filter on the top right corner of the listing, making for an easy reporting of taxes to your local tax office.

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