the-moog wrote:I think there is a problem with the symantics of purchase tax.
The problem is that items have a tax type, this is OK, but means that you can then only purchase that item from a certain supplier as other suppliers may have a different tax arrangement as they may be in a different state or country.
The tax system is somewhat complex, but flexible and proven. It was explained some times on the forum (e.g. here).
Basically the tax calculated is selected as intersection of set of taxes applicable to item and set of taxes applicable to customer/supplier. For instance hypothetical VAT system with 2 rates in internal trade and and special single 1% export tax will have following settings:
. Tax Types defined: VAT 19%, VAT 5% and Export tax 1%
. Some items with Item Tax Type 'Regular' - 19%VAT and 1%export tax (%5VAT exempt)
. Some items with Item Tax Type 'Preferenced' - 5%VAT and 1% export tax (19%VAT exempt)
. Tax Group 'VAT' - includes types 19%VAT and 5%VAT
. Tax Group 'Export' - 1% export tax
Now, if you sell preferenced goods with lower VAT rate (say food) for domestic customers the result VAT is 5%:
[5%VAT, 1%Exp] X [5%VAT, 19%VAT] => 5%VAT
For items taxed with regular rate:
[19%VAT, 1%Exp] X [5%VAT, 19%VAT] => 19%VAT
If you sell regular goods with regular VAT rate to foreign customer the result tax is always 1%:
[19%VAT, 1%Exp] X [1%Exp] => 1%Exp
or:
[5%VAT, 1%Exp] X [1%Exp] => 1%Exp
So as you see it works for any customer/supplier/items tax arrangements, providing correct tax setup and this is a reason why the bug report 155 was closed without changes. Maybe this is not straight forward, but it works right for most local tax systems. Surely it needs better documentation than posts on forum 
.
Janusz
PS The same tax calculations are made for purchases. Let's set Quick Entries aside for later discussion as this is new feature which still varies.
J.
