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• And more!
Check out this thread to learn more!
Discount items and sales tax
I am trying to set up a "Shipping Discount" item. The use case is:
- Normal shipping is $10 (taxable in my state at a rate of 7%, so .70 of sales tax is charged)
- Add $10 line-item discount to the sales order -- tax should be $0
Any line item discounts I add have no effect on tax calculations, regardless of the tax schedule of the discount. I've also played with "Apply before sales tax" and I can't see any change in behavior. The discount never reduces my tax.
If I instead put the discount on the transaction, it does reduce my tax, but only slightly. In this case, I am trying to give a shipping discount, and it should entirely wipe out the tax.
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