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Tax on tax scenarios used to be applied in certain Canadian provinces, Quebec for example charged a sales tax on the selling price of an item after GST was charged. The content below shows how the tax on tax behavior worked when Quebec Sales Tax (QST) was applied to a service charge after other taxes (GST) were already charged.
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Notice: When enabling tax on tax the tax will be applied only after all other standard taxes are calculated and applied. |
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The tax code for Quebec will now resemble the image below.
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