Raj_bv-tax

[primal cipher]

Hi 👋 very interesting question! I'm not sure off the top of my head, but please bear with me while I see what I can find.

[fathom ocean]

Sure and thanks toby

[primal cipher]

Apologies for not asking this sooner, but are you using Stripe Tax or tax rates?

[cinder sandal]

I don't expect you'd be able to have one tax rate apply to the tax amount generated by another

I've deal with this in a previous role, though

and one way to address this is to create a blended rate for the one that needs to include the other

say you have 5% and then 8% that should include the 5%

you adjust the 8% tax rate to be 8%*1.05 = 8.4%

If that's how your taxes ought to be calculated

but you need to be very careful to make sure you're charging correct taxes

[fathom ocean]

No problem. I am using tax rates.

[fathom ocean]

The tax rates that we are using are 7% for GST and 10% for Service Tax. Having blended tax will result a different amount in the customer invoice and I am afraid I cannot do that as the customer expects fixed GST and service Tax. Is there a way to either force Stripe to calculate GST with Service Tax and amounts ? We are also okay if Stripe API/SDK provides option to overwrite the tax calculations. Need your advice.

[cinder sandal]

This is not supported, as far as I can tell -- I think the blended rate would be the best option here with an explanation of why that's used

[fathom ocean]

Understood. Thanks a lot

[fathom ocean]

Apologies for troubling you in the calculation. Could you please help me in understanding on how you arrived at 1.05 in the example ?

[cinder sandal]

That's just a representation of the 5%

In your example if you need to apply 10% service tax then 7% GST also on the service tax, one of these needs to be increased to account for the stacking. or you could have a third tax rate to separate it: 10%*7% = 0.7% GST on service tax