Hi, I live in Quebec, Canada and I'm having trouble with making Zencart calculate the taxes on my products. I have read a few articles explaining how to set things up, but none it seems address this matter. Here is the problem.
In Quebec, there are two taxes on products. The first is the federal one (that is called TPS) and the second is the provincial one (that is called TVQ). The way they are calculated is as follow (let us assume an amount of 5$ for this example).
First, the federal tax applies which is currently at a rate of 6%. So:
6% X 5$ = 0.30$
Next is the provincial tax. HOWEVER, it DOES NOT apply to the original amount, instead, it applies to the original amount PLUS the TPS that has just been calculated. Now the provincial tax rate at the moment is 7.5%, so:
7.5% X (5$+ 0.30$) = 0.40$
The grand total should then be:
5$ + 0.30$ + 0.40$ = 5,70$
Now when I try to set taxes up with zenith cart, all I manage to get for this same amount is 5,68$. This is because the provincial tax was applied to the ORIGINAL amount of 5$ instead of the increased amount of 5,30$.
This difference might look insignificant because my test product is cheap... but when you increase the prices, the difference automatically increases too (for 10$ the difference is already 0.05$). I tried to change the tax priorities, increasing and decreasing them, putting TPS at 1 and TVQ at 2 and vice versa, but the amount does not change regardless of the values I set for this field.
Is there anything I'm doing wrong, because quite frankly, I'm at my wits' end here. Thanks in advance.
Tobbi Filteau



