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10/31/2012 8:36 AM
 
We do deals with Groupon and Living Social where coupons for products are offered at reduced rates. Those coupons are then used on our site and reduce the cost of the product to 0. Until now, we have not charged tax. In fact, I cannot see how to do so in SmithCart since tax is charged on the after-coupon subtotal. And if that coupon purchased reduces the cost to 0 then there is 0 tax. Some states, however, appear to want to recover tax on the full amount of the product...

http://www.forbes.com/sites/janetnova...

Is there a way in SmithCart to do this? If not, can I get a quote for a modification to allow for tax on pre-coupon sales price?

Thank you
 
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10/31/2012 8:48 AM
 
I subsequently found this in your changelog for a couple versions back...

Option to apply tax before or after discounts
In the BuyNow module settings added a new radio button list option that allows you to select "Apply Tax Before Discount" or "Apply Tax After Discount".

...but I cannot find it in the settings. Will this do what I need for coupons? How do I get to it? We are currently on smithcart 5.0 and about to move to the new release.
 
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11/1/2012 3:49 PM
 
Hi Scott,

The feature which is referenced in our Change Log was inadvertently added as the client which requested the feature did not move forward with programming. I have removed this from the Change Log and added it to our Dev Roadmap because I think it would be a very useful enhancement.

What Tax Setting do you have configured in your Cart?

Depending on the jurisdiction, coupons may or may not reduce the sales tax which must be paid by the consumer. This is often determined by who sponsors the coupon. If the coupon is issued by the retailer, the product was never offered at the original price and the coupon represents a reduction in the amount paid and the tax. If the coupon is issued by the manufacturer, the original price is still paid but some of the price is covered by the manufacturer instead of the consumer and the full price remains taxable. This is the case with the coupon-eligible converter boxes in the U.S., which compensate in part for the forced conversion to digital TV. Mobile coupons have become very popular among US fast-food customers. The primary success factors for the SMS campaigns are discount size, how the discount value is framed (as a gift or percent off) and the timing of the campaign.

http://en.wikipedia.org/wiki/Coupon

As always there are a lot of rules and exceptions when it comes to tax and the rules and exceptions vary by country, state, province and sometimes city. The way the cart is programmed to apply tax on the original subtotal and not the discounted subtotal is correct in some countries and tax jurisdictions but in order to support all b2b and b2c stores we will need to add a new cart setting that allows the store admin to configure the cart to charge tax on the non-discounted subtotal or the discounted subtotal.

If would like to sponsor a portion of the development please submit your quote request here: https://www.smith-consulting.com/Serv...

Please let me know if I can help with anything else.
 
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11/5/2012 8:01 AM
 
I apologize but I am confused  by your reply. 

We currently have zip2tax configured for tax calculations and perform that on a list of 6 states.

Will that calculate tax on the amount prior to or after the coupon application?

thank you,
Scot
 
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11/5/2012 1:18 PM
 
Hi Scot,
I believe the cart calculates tax on the subtotal prior to the coupon being deducted but to confirm I recommend testing your cart setup.


Scott Kelly
Project Manager
DotNetNuke Consulting, DotNetNuke Store and DNN Ecommerce
 
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11/5/2012 1:35 PM
 
It appears to be doing the calc AFTER coupon application...What configuration in the store will allow it to do so before coupon application?

Sub Total : $2,200.00
Discount : -$1,100.00
Shipping & Handling : $0.00
Sales Tax 6.00% : $66.00
Total : $1,166.00



 
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11/5/2012 4:13 PM
 
Hi Scot,
It looks like I was incorrect in my previous post saying that the cart calculates tax on the subtotal prior to the coupon being deducted. You are correct the cart calculates tax on the subtotal after discounts are applied. Currently, the cart does not have a setting to change the tax calc after the coupon is applied. I believe you were provided with a quote today to add this feature.

thanks,


Scott Kelly
Project Manager
DotNetNuke Consulting, DotNetNuke Store and DNN Ecommerce
 
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