Originally Posted by
DigitalShadow
In the UK we have VAT, value added tax.
20% of the value of the good or service is added to the total.
Product cost - Reward Points = Sub-Total
Subtotal + Tax = Total
If reward points are used, the value of the product is less, therefore less tax should be charged.
Taking money off the total after the calculation of tax is wrong.
Tax must be calculated based on the value of the goods and services. If reward points are used to lower the cost of goods, then the tax rate must reflect the new sub-total.
ot_group_pricing works fine with tax,
£44.99 = Sub-Total
-£6.75 = Group Discount
£0.00 = Free Shipping
£7.65 = Product VAT
£45.89 = Total
Doing the same checkout with reward points instead of group discount gives this
£44.99 = Sub-Total
-£6.75 = Reward Points
£0.00 = Free Shipping
£9.00 = Product VAT (tax calculation not taking reward points into equation)
£47.24 = Total
Can you see the problem?
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