Include first tax in subtotal then calculate second tax on that subtotal

Self-Hosted | v5
1

Hi everyone,

I am not sure if something like this possible.
By default, I have a “handling fee” of 2% on the subtotal of the invoice. So regardless of what the line items comes to, the handling fee will always be 2%. Before I should manually calculate this and add it as a line item until @hillel advised me to create it as a tax so it will automatically calculate.

However, now my business is going to be registered for VAT of 15%.
I know we can have 2 taxes on an invoice, however the issue I am having is that it calculate the “handling fee” on the subtotal of the line items and then calculates VAT on the subtotal as well, but I want it to include the “handling fee” as part of the VAT calculation.

In my example below, you can see the subtotals, “handling fee”, VAT and Total.
image

I want it to calculate as follows:
Subtotal: R522
“handling fee”: R10.44
VAT:(R522 + R10.44) X 15% = R79.866
Total: R522 + R10.44 + R79.86 = R612.30

Is something like this possible or would I have to go back to manually calculating the handling fee and adding it as a line item ?

I have tried using VAT on the line items directly but that still does not calculate correctly.

Any advice or suggestions would be appreciated.

2

Hi,

One option may be to apply a negative discount and then update the label of the discount on the invoice. It’s a bit of a hack though, there may be an issue requesting this feature on GitHub.

3

Hi @hillel

I will try your suggestion, will provide feedback shortly.
I have found this issue(s) on github as well, mentioned in September and December 2018. Not sure if it has been implemented or not as I’ve seen its still under the open section. Is there anyway to encourage this feature being implemented?

4

The provided solution here for compounding taxes, is to have a tax rate on the line item, and then on the total as well.

5

Hi @david

I have done as you advised, added line item tax and the tax on the total but it still isn’t correct value. Am I doing something wrong ? Below are snips of the invoice and tax settings.

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I have even swopped the tax rates around

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These are my tax settings:

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I have also tried what @hillel suggested but do not get the value needed.

6

Hi @hillel and @david

Is there anything else I can try ?

7

Hi @hillel and @david

I apologize for being a pest, but please can you assist me with this as I have tried everything possible and there is still not result of what @david has suggested.

Thanks

8

Sorry, I don’t believe this is currently supported.

9

So trying the way that @david has suggested hasn’t proved to work in the past ?
Is it possible for this to be included in the next patch / release ?

I do not even mind paying for this feature to be implemented, as I highly need this feature because my entire business runs of invoice ninja currently!
To get a functionality of what was said in this comment below will be excellent !

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10

Sorry, we don’t accept payments to implement features.

11

Okay, I will just wait for this feature to be implemented
Thanks and I apologize again for being a pest on this.

12

@JeromeTR

Is your region Canada for this?

When using compounding taxes, is it a blanket rule that all taxes compound, or do they only impact certain scenarios?

13

Hi @david

My region isn’t listed there, I am from South Africa.

For the compound tax, it would apply to all quotes/invoices going forward. However only the VAT would compound over other taxes. That will be the last tax that must be calculated on the subtotal plus other taxes.
Essentially, what I would need is explained below:

If the subtotal is R100.
2% - handling fee
15% - VAT

What I get :
Balance Due = Subtotal + (2% + 15%)
R100+( 17% ) = R117

What I need :
Balance Due = (Subtotal + 2%) +15%
(R100 + 2%) + 15% = R117.3

14

Hi @david

By any chance is there any development being done on this request? I cannot see any update on Github as well about this feature being added.

Thanks

15

@JeromeTR

Not as yet.

it is a non-trivial change, so would require a bit of discussion/planning internally.

16

Hi @david

Thanks for the update!
I will continue doing this a manual way of making a line item for the handling fee / service charge and have the VAT as the tax until you guys get a chance to do this. :slight_smile:

Appreciate all the effort !

17

Hello @david

By any chance has there being any discussion or thoughts about implementing the compound tax as mentioned above ?

I am prepared to purchase the software consistently every year (until the close of my business) to get this feature developed, rather than me moving to another invoicing software that has this functionality already.

Thanks

18

Hello @david and @hillel

I may have found a way to do the “compound tax” - it is a workaround. But I need your assistance.
I have entered my "handling fee (it is now 5% of invoice subtotal) " in the discount section as “-5” and have VAT selected as the Invoice Tax. It calculates correctly, however is there a way to change it from saying “Discount” on the invoice/quote to something else? Or can I add another section onto the invoice that also works with percentages the same way the Discounts works. Please see images below.

Settings

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PDF
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19

Okay, I managed to figure out how to make it show as “Handling Fee - 5%” but now to remove the minus sign before the amount…

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20

To anyone else who will need this, this is my work around

This work around requires you to create a custom invoice design and you would use the “Discount” field as the 1st Tax option.

On the custom invoice design, you would have to add this code into the “Footer” section
In my case, I did not need a second tax, but rather an “admin / handling” fee as a percentage of the invoice.
You can change the last line where I have "Handling Fee - " to the name of your tax.

const discountElement = document.querySelector('[data-ref="totals_table-discount"]');
let textContent = discountElement.textContent;

if (textContent.startsWith('-')) {
    textContent = textContent.substring(1);
    discountElement.textContent = textContent;
}

const subtotalElement = document.querySelector('[data-ref="totals_table-subtotal"]');

const discount = parseFloat(discountElement.textContent.replace(/[^\d.-]/g, ''));
const subtotal = parseFloat(subtotalElement.textContent.replace(/[^\d.-]/g, ''));

const discountPercentage = ((discount / subtotal) * 100).toFixed(2);

const discountLabel = document.querySelector('[data-ref="totals_table-discount-label"]');
discountLabel.textContent = `Handling Fee - ${discountPercentage}%`;

After adding this code to the custom invoice design, save it and make this new design the default. There after all new invoices will follow the new format. You would then put minus and the tax amount, in my case it was 5% so I put “-5” into the discount field, leave it as percentage and select VAT as the Tax for the invoice.

Hopefully this helps others until the developers make a proper way of doing compound tax.

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