Hello community, I need help understanding how to include a special tax, for the moment I can’t find a way of doing it with the system.
Brief summary: In our country El Salvador, alcoholic beverages are subject to 2 specific taxes:
1)Alcoholic specific content tax (Alicuota) :** It’s a specific amount (not percentage) charged per each 1% of alcohol content per liter of alcoholic beverage. Each type of liquor has a particular tax amount per % of alcohol per litre of product.
Example of Alcoholic content tax table:
Example:
One bottle of 750 ml vodka 40% alc/vol is subject to:
[Alcohol %] x [Alicuota] x [volumen in liters]
40 x 0.09 x 0.75 = $2.70
2) Ad Valorem tax : The ad-valorem tax rate will be eight percent (8%).**
This rate will be applied to:
-
The suggested selling price to the public, declared by the producer or importer to the Tax administration.
-
The price differential, when alcoholic beverages are sold to the consumer at prices higher than those suggested to the public.
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If item is sold below the suggested price to public the differential (8%) will be awarded as credit for the next month declaration.
From ERPNEXT point of view each item (Vodka, 40%, 750 ml) has specific details to correctly calculate the final tax and selling price.
| ITEM NAME | LUNA Basalto Vodka 750ml 40% |
|---|---|
| Product type | Vodka |
| % of alcohol | 40% |
| Volume | 750 ml |
| Alicuota | 0.16 |
| Suggested retail price (without any taxes) | 12.50 |
| Selling price (without any taxes) | (could be lower, equal or higher than suggested retail price) |
Complete calculation of alcoholic beverage tax:
- Case 1 (Selling price = Suggested retail price):
-
Case 2 (Selling price > Suggested retail price):
-
Case 3 (Selling price < Suggested retail price):
