Hi,
Take a look at the attached screenshot. When I calculate sales tax I get $1.49 versus the $1.48 calculated by Clover. In my approach, I calculate the sales tax for each item and round it for the item. I then add up all the item taxes. It seems that Clover is applying the 10% tax rate to the total and then rounding. Would this be different if I had tax rates at the item level in Clover. What's the right approach?
Gerardo
Clover gives the option to tailor the tax in whatever way you want as the approach you take depends entirely on local laws - so there isn't one size fits all. In the EU, sales tax (VAT) is inclusive, in the US it is exclusive (i.e. applied on top of the item price) so you have to keep that in mind if you are developing across borders.
Your issue is to do with rounding i.e. round individual items vs round the total. And keep this in mind as there are different rounding rules too - some states only round up for example.
Within the US there are different approaches in different states so you would have to check them out. For example in California, you apply sales tax to the total, then round up.
Currently there is no way for a merchant to change the rounding model.
Thanks for following up. Where in Clover do I specify whether to round individual items versus the total?
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