KonaKart Community Forum

Hi
i had seen that priority level in Tax Rate
if i had two same tax class and same tax area then
if both priority is same then the tax rate are added (Tax Rate 1+ Tax Rate 2).
suppose if both priority is different then the tax rate is calculate



why this calculation done,
if priority is different then Tax Rate should Specified higher priority only why specified earlier calculation.  please help someone i am totally confused.

Hi,

The reason for giving tax rates different priorities is to enable compounded tax rates where the one tax rate is applied first and the next rate is applied on the new total obtained after applying the first rate.

For example:

If the tax rates are 5% and 6% with equal priority, then we use 11%
If the tax rates are 5% and 6% compounded, the number turns out to be 11.3%

Does this answer your question ?

-Paolo

thanks