Pre-tax and post-tax are set up in Tax Settings.
Calculate Pre-Tax
- Pre-tax amounts are applied to an item subtotal. Once pre-tax is calculated, regular taxes are applied.
For example, on a $20 item calculate a regular tax of 10% after applying a 4% pre-tax: ($20 + 4% pre-tax = $20.80) + 10% overall tax = $22.88. The total tax for this transaction is $2.88.
Calculate Post-Tax
- Post-tax is an additional tax calculated after regular taxes are applied.
For example, on a $20 item calculate a regular tax of 10% + a 4% post-tax: $20 (10% regular tax + 4% post-tax) = $22.80. The total tax for this transaction is $2.80.
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