Coupon Calculates Taxes With Wrong Way

[AlexF]

When I apply a coupon the tax calculates like that:

Original price x tax amount

Original price - discount

Discounted price + tax amount = total

If you give 100% discount you will see that an amount will be = tax amount (doesn't make sense)

Should be like that:

Original price - discount x tax amount = total

So something like that

[Cody]

In other words, if the service is taxable then tax should be applied to the discount as well. For example:

 

Service = $100

Tax 10% = $10 ($100 * 0.1)

Discount 50% = $50 ($100 * 0.5)

Discount tax = $5 ($50 * 0.1)

Total = $55

[AlexF]

You are absolutely right, but where can I set up that the coupon is taxable or not?

[Cody]

Taxes are applied to line items, however discounts are calculated as a single line item. Meaning if you have a discount that applies to 2 services, but only 1 of which is taxed, then the entire discount line item would have tax applied and you'd end up with an incorrect total.

 

We need to discuss internally how we should be handling this. Whether there should be a discount line for each service, or whether the discount amount should simply include any tax amounts (CORE-861).

[AlexF]

Thank you. We will be waiting for your decision and fix.

[AlexF]

The issue has been resolved in Blesta 3.0.6 release. Thank you very much.