Apply sales tax to pre-discounted amount

  • Our shop is running a sale and we need to charge sales tax on the original product price BEFORE any discounts are taken (this is Washington law). However, the opposite is happening – sales tax is being applied on the discounted amount. Note – I’m not using the coupon feature, this is a sale for a specified time period.

    Is there a setting I’m missing? I can’t seem to find anything about it, but I must be missing something.

    Thanks in advance for your help.

    https://www.ads-software.com/plugins/woocommerce/

Viewing 3 replies - 1 through 3 (of 3 total)
  • Thread Starter LoraLu

    (@loralu)

    Is anyone able to help with this?

    Basically, our shop is running a sale and taxes are not being calculated properly.

    We need to charge sales tax on the original product price BEFORE any discounts are taken (this is Washington law). However, the opposite is happening – sales tax is being applied on the discounted price instead of the original price.

    Note – I’m not using the coupon feature, this is a sale for a specified time period.

    Plugin Contributor royho

    (@royho)

    Hello,

    I am curious to see information on that law. Can you please provide that if possible? All the states I have researched thus far says to always apply sales tax AFTER any discounts are made.

    Thread Starter LoraLu

    (@loralu)

    I have an update on this and it turns out you are right.

    My client thought this was the law because that’s how she’s always done it through QuickBooks. However, after calling the state department of revenue, she discovered that WooCommerce was in fact doing it correctly all along by applying sales tax AFTER any discounts are made. So way to go WooCommerce!

    And WA state never pointed out her error either (why would they when she’s making more money for them)??

    On a side note, she did bring this issue to QuickBook’s attention. Apparently Quickbooks has a setting to change the way sales tax is calculated, but it is their default to charge sales tax BEFORE any discounts. Ridiculous.

Viewing 3 replies - 1 through 3 (of 3 total)
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