Sales Tax Example: Child Jurisdiction's Tax Applied to Order Line Plus Parent Jurisdiction Tax

This example uses the same scenario as Sales Tax Example: Child Jurisdiction Overrides Tax of Parent Jurisdiction except it assumes that Philadelphia county charges sales tax on the original order line as well as on the tax amount charged by Pennsylvania state.

Important Note

This topic uses sample Sales Tax Rate records for Pennsylvania state and Philadelphia county to illustrate the sales tax functionality provided by Aptify and to illustrate how changing one or more fields can modify the sales tax behavior. These examples are not intended to reflect the actual requirements for these tax jurisdictions. Refer to Pennsylvania state's Web site (http://www.state.pa.us/) for information on its sales tax policies.

In this case, the Sales Tax Rate record for Philadelphia county has the Include Parent Taxes In Calculation option selected, as shown in the figure below.

When a customer in Philadelphia places an order for a $100 taxable product, Aptify automatically calculates a tax amount of $7.06, which breaks down as follows:

$6 for Pennsylvania state ($100 x 6% = $6)
$1.06 for Philadelphia county ($106 x 1% = $1.06)

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Sales Tax Example: Child Jurisdiction's Tax Applied to Order Line Plus Parent Jurisdiction Tax