Problem with doing quotes when sales tax in involved - other quote issues

[durangod]

I set up my tax rate of 7.000% USA and i did apply it to all states and countrys.

 

When i did the quote for the CA customer the tax rate on the quote was reduced to CAD (canadian conversion rate) and was not my local amount. I think you might check the order form as well because i think it is also effected by this.

 

Also please check to make sure that when you save a quote as draft that it saves it, i had to redo my quote all together because when i clicked save (on draft type) it did not save it. I had to show it on hold to save the quote until i sent it.

 

For now i disabled taxes will i can figure out why or have a patch installed for this if there is indeed an issue.

[WHMCS John]

Could you please provide some more information on this please? What are the actual amounts involved in your example? For a USD quote they should be charged 7% of the total in USD, for a quote in CAD they should be charged 7% of the total in CAD.

[durangod]

Maybe i misunderstood here, i thought that if i am in USA then i charge tax based on my tax rate and my currency and not the currency of where my client is.

 

My point being when the tax man wants his taxes, he wants 7 percent of the US dollar amount not CAD amount, so im thinking that TAX should only be specific to where i am not where my client is.

 

I understand that my currency exchange can be applied to products and services, but when it comes to tax that tax amount should be only calculated on my location currency USD and not CAD. So for example if i have a product that cost a USA client $12.00 and the CAD client $10.00 then my 7 percent should be based on $12.00 USD not cad. Because my tax is here not there. Isnt that correct.

[WHMCS JamesX]

As a US company, you're charging us Canucks tax? I'm confused.

[durangod]

As of now i have my tax turned off, but i was reading this last week.

 

http://www.cardfellow.com/blog/online-sales-tax-rules-laws/

 

and i thought the day is comming where we will be required to do so and so why not start now to make sure it all works correctly so i have been running some tests.

[WHMCS JamesX]

I didn't read that entire page, but what's it have to do with you charging tax to Canadian residents? I have no intent of ever paying tax to any entity outside of my own country. That aside, if you're charging tax to Canadians now, with no laws in place requiring this as of yet, it's illegal. And, unless I completely missed the boat, there aren't any at present. I have suppliers in multiple countries, including the US, and tax has never been an issue with any of them. I do pay certain taxes to the CRA for certain imports, but I don't pay anything to the out-of-country suppliers though.

Edited January 14, 2013 by WHMCS JamesX

[durangod]

Yes i understand and i have not charged anyone tax to date. The whole issue stems from the fact that between nexus rulings and special state affiliate laws, the day is comming very soon that all sales over the net will be subject under some rule that requires sales tax be applied to certain intangible products. I am doing some research now to find out what new laws for 2013 have gone into affect in my area. And since i am planning to change my license soon to a LLC i need to have all my ducks in a row.

 

So with that, making sure this feature works correctly now works to my advantage. My areas is really cracking down on website companies that do not charge any tax at all and i just want to be fully prepared.

 

I hope that explains it.

[WHMCS JamesX]

Regardless an online or brick-and-mortar, I'll never pay tax to an out-of-country business. I'll simply cease to do business with any such entity. With that said, are you saying that the US is trying to tell US-businesses, whether brick-and-mortar or otherwise, to charge everybody in the world tax? Ya, good luck with that...

Edited January 14, 2013 by WHMCS JamesX

[durangod]

Its comming to that im afraid, they are trying to push it in that direction. Many states now have rules that if you have a certain number of affiliates in a state then you must charge sales tax of that state. From what i gather a group of rule makers got together and said its time to crack down on online businesses that dont charge tax. Their issue is that brick-and-motar cant get a way with it so how can internet companies, in their mind business is business.

[WHMCS JamesX]

Inter-state is one thing, but what does that have to do with global/International though? US brick-and-mortar don't charge tax internationally. What I got from my brief overview of that page you linked was regarding inter-state stuff. I saw nothing about international. While I do agree that business is business, if you're a US business entity you're a US business entity regardless of type; however, the US can't tax the world.

[durangod]

I know several companies that charge tax in one form or another to out of country shipments. Of course there are ways around that by labeling it for resale among other ways. Whether they choose to call it a tarrif or sales tax, or just shipping and handling its all for the same purpose, to cover business expenses (including taxes). And we get charged quarterly based on our sales of products.. Unfortunately the tax dept does not care who lives where, they just see that we sold so much and we owe so much.

 

What will more than likely happen, which is already the case in many businesses both B-A-M and Internet (which is prob why most people dont even see tax on their statements for products) is that companies eat the cost internally as a price of doing business, or they pad their rates to cover the tax.

 

So we all have more than likely paid tax james, it was just never posted that way or made obvious.

Edited January 14, 2013 by durangod

[WHMCS JamesX]

Duties/tarriffs are somewhat different than sales tax specifically. I do pay those for certain imports. Most Internet businesses are probably not even businesses; not legally anyhow. All of that aside though, I still stand by what I said that if US-entities ever start attempting to charge me a sales tax, I'll take my business elsewhere. Thank your government.

Edited January 14, 2013 by WHMCS JamesX

[durangod]

I understand james completely.

 

I thought these might be helpful in general for those that wondered about this stuff, its not international but as it says they are trying to change the nexus laws every day.

 

http://taxes.about.com/od/statetaxes/a/sales-tax-myths.htm

 

http://taxes.about.com/od/statetaxes/a/Main-Street-Fairness-Act.htm

 

And after that im sure they will attack the next level of revenue, international sales.

[JFOC]

trying with other currency with many digits like Indonesian rupiah will raised 9999999999.99 when the correct decimal is like DECIMAL(15,2) but in table its only DECIMAL(10,2) even you change it manually to DECIMAL(15,2) the result will be wrong in quotes or maybe in invoice if converted to invoice from quote

[durangod]

trying with other currency with many digits like Indonesian rupiah will raised 9999999999.99 when the correct decimal is like DECIMAL(15,2) but in table its only DECIMAL(10,2) even you change it manually to DECIMAL(15,2) the result will be wrong in quotes or maybe in invoice if converted to invoice from quote

 

Hi look at post #5 here and see if that helps you

http://forum.whmcs.com/showthread.php?66319-3-decimals-taxes

[JFOC]

Hi look at post #5 here and see if that helps you

http://forum.whmcs.com/showthread.php?66319-3-decimals-taxes

yes I was doing this before, but its not resolving the problem.

The problem is my currency has long number for example in my case:

USD 18000.00

 

My Currency is 180000000.00

[durangod]

That might have something to do with the limitations of php or mysql. I am trying to remember at one time a long time ago i had an issue with a number such as this and i eventually had to process it a different way because if i remember it was either a php limitation or a integer limitation of some kind. I think this is worth a support ticket as you have a very special circumstance here. Please keep us posted im curious, thanks

[JFOC]

That might have something to do with the limitations of php or mysql. I am trying to remember at one time a long time ago i had an issue with a number such as this and i eventually had to process it a different way because if i remember it was either a php limitation or a integer limitation of some kind. I think this is worth a support ticket as you have a very special circumstance here. Please keep us posted im curious, thanks

I am afraid this is not php/mysql limitation

[durangod]

Have you looked at the value of it as it comes from the post or db query. It might be that the value is correct but the template is truncating it. I might be a simple fix or maybe a bug deal, have you done a support ticket on this?

[JFOC]

I dont check the value were saved into database.

I dont contact support as I will not extend the support cost until they had ETA for next release, so I am afraid they will just ignoring me and pay for nothing