Tax Calculation

Totals and Tax Calculation System

Introduction

The tax calculation system calculates the total tax and item total based on various parameters such as item price, quantity, tax types, tax values, and units. The calculation is recursive and backward, starting from the last applied tax.

Parameters

• Item Price (price): An integer value representing the single unit price of the item. It follows the Currency Codes and Minor Units specified here.

• Item Quantity (quantity): An integer value representing the quantity of the item. Item quantity consists of two properties: - amount: integer value - per: ( FLAT_FEE | PER_HOUR | PER_DAY | PER_NIGHT | PER_WEEK | PER_MONTH | PER_YEAR | PER_PERSON )

• Tax Type (type):

VAT, BED_TAX, CITY_HOTEL_FEES, COUNTRY_TAX, CITY_TAX, ENERGY_CHARGE,
FEDERAL_TAX, GST, INCLUSION, LODGING_TAX, MAINTENANCE_FEE, OCCUPANCY_TAX,
PACKAGE_RATE_FEE, ROOM_TAX, RESORT_FEES, SALES_TAX, STATE_PROVINCE_TAX,
SURCHARGE, SERVICE_CHARGE, OTHER_TAX, TOURISM_TAX

• Tax Value (value): An integer representing the tax value. If the tax unit is PERCENT, it represents a percentage of the item price. If the tax unit is AMOUNT, it is a constant value following the Currency Codes and Minor Units specified here.

• Tax Unit (unit): AMOUNT or PERCENT.

• Tax Applied To (apply_to): Refers to any of the previous tax types in the item taxes list or "NET_PRICE" for the first tax.

• Tax Per: FLAT_FEE or PER_QUANTITY.

Calculation Logic

The tax calculation is recursive and backward, starting from the last applied tax backward to the item value. The total tax and item total are calculated accordingly.

Examples

Case 1

• Item (price: 49999 (499.99 USD), quantity: 2)

• Taxes:

Tax Type	Tax Value	Tax Per	Apply To	Tax Per Item	Total Tax
VAT	20 %	PER_QUANTITY	NET_PRICE	10000 (100 USD)	20000 (200 USD)

• Item Total: 119998 (1199.98 USD)

• Total Tax: 20000 (200 USD)

Case 2

• Item (price: 10000 (100 USD), quantity: 1)

• Taxes:

Tax Type	Tax Value	Tax Per	Apply To	Tax Per Item	Total Tax
VAT	10 %	FLAT_FEE	NET_PRICE	1000 (10 USD)	1000 (10 USD)
BED_TAX	20 %	FLAT_FEE	VAT	2200 (22 USD)	2200 (22 USD)
MAINTENANCE_FEE	15 %	FLAT_FEE	BED_TAX	1980 (19.8 USD)	1980 (19.8 USD)

• Item Total: 15180 (151.8 USD)

• Total Tax: 5180 (51.8 USD)

Case 3

• Item (price: 10000 (100 USD), quantity: 2)

• Taxes:

Tax Type	Tax Value	Tax Per	Apply To	Tax Per Item	Total Tax
VAT	10 %	PER_QUANTITY	NET_PRICE	1000 (10 USD)	2000 (20 USD)
BED_TAX	20 %	PER_QUANTITY	VAT	2200 (22 USD)	4400 (44 USD)
MAINTENANCE_FEE	15 %	PER_QUANTITY	BED_TAX	1980 (19.8 USD)	3960 (39.6 USD)

• Item Total: 30360 (303.6 USD)

• Total Tax: 10360 (103.6 USD)

Case 4

• Item (price: 10000 (100 USD), quantity: 1)

• Taxes:

Tax Type	Tax Value	Tax Per	Apply To	Tax Per Item	Total Tax
VAT	10 %	PER_QUANTITY	NET_PRICE	1000 (10 USD)	1000 (10 USD)
BED_TAX	20 %	PER_QUANTITY	VAT	2200 (22 USD)	2200 (22 USD)
FEDERAL_TAX	7 %	PER_QUANTITY	NET_PRICE	700 (7 USD)	700 (7 USD)
MAINTENANCE_FEE	15 %	PER_QUANTITY	FEDERAL_TAX	1605 (16.05 USD)	1605 (16.05 USD)

• Item Total: 15505 (155.05 USD)

• Total Tax: 5505 (55.05 USD)

Case 5

• Item (price: 10000 (100 USD), quantity: 3)

• Taxes:

Tax Type	Tax Value	Tax Per	Apply To	Tax Per Item	Total Tax
VAT	10 %	PER_QUANTITY	NET_PRICE	1000 (10 USD)	3000 (30 USD)
BED_TAX	20 %	PER_QUANTITY	VAT	2200 (22 USD)	6600 (66 USD)
FEDERAL_TAX	7 %	PER_QUANTITY	NET_PRICE	700 (7 USD)	2100 (21 USD)
MAINTENANCE_FEE	15 %	PER_QUANTITY	FEDERAL_TAX	1605 (16.05 USD)	4815 (48.15 USD)

• Item Total: 46515 (465.15 USD)

• Total Tax: 16515 (165.15 USD)

Case 6

• Item (price: 4400 (44 USD), quantity: 1)

• Taxes:

Tax Type	Tax Value	Tax Per	Apply To	Tax Per Item	Total Tax
VAT	7 %	FLAT_FEE	NET_PRICE	308 (3.08 USD)	308 (3.08 USD)
BED_TAX	3 %	FLAT_FEE	VAT	144 (1.44 USD)	144 (1.44 USD)

• Item Total: 4849 (48.49 USD)

• Total Tax: 449 (4.49 USD)

Case 7

• Item (price: 4400 (44 USD), quantity: 3)

• Taxes:

Tax Type	Tax Value	Tax Per	Apply To	Tax Per Item	Total Tax
VAT	7 %	PER_QUANTITY	NET_PRICE	308 (3.08 USD)	924 (9.24 USD)
BED_TAX	3 %	PER_QUANTITY	VAT	144 (1.44 USD)	423 (4.23 USD)

• Item Total: 14547 (145.47 USD)

• Total Tax: 1347 (13.47 USD)

Case 8

• Item (price: 4400 (44 USD), quantity: 1)

• Taxes:

Tax Type	Tax Value	Tax Per	Apply To	Tax Per Item	Total Tax
VAT	10 %	PER_QUANTITY	NET_PRICE	440 (4.4 USD)	440 (4.4 USD)
BED_TAX	3 %	PER_QUANTITY	VAT	145 (1.45 USD)	145 (1.45 USD)
MAINTENANCE_FEE	7 %	PER_QUANTITY	NET_PRICE	308 (3.08 USD)	308 (3.08 USD)
BED_TAX	15 %	PER_QUANTITY	MAINTENANCE_FEE	706 (7.06 USD)	706 (7.06 USD)

• Item Total: 5999 (59.99 USD)

• Total Tax: 1599 (15.99 USD)

Case 9

• Item (price: 4400 (44 USD), quantity: 2)

• Taxes:

Tax Type	Tax Value	Tax Per	Apply To	Tax Per Item	Total Tax
VAT	10 %	PER_QUANTITY	NET_PRICE	440 (4.4 USD)	880 (8.8 USD)
BED_TAX	3 %	PER_QUANTITY	VAT	145 (1.45 USD)	290 (2.9 USD)
MAINTENANCE_FEE	7 %	PER_QUANTITY	NET_PRICE	308 (3.08 USD)	616 (6.16 USD)
BED_TAX	15 %	PER_QUANTITY	MAINTENANCE_FEE	706 (7.06 USD)	1412 (14.12 USD)

• Item Total: 11998 (119.98 USD)

• Total Tax: 3198 (31.98 USD)

Case 10

• Item (price: 50 (0.50 USD), quantity: 3)

• Taxes:

Tax Type	Tax Value	Tax Per	Apply To	Tax Per Item	Total Tax
VAT	7 %	FLAT_FEE	NET_PRICE	4 (0.04 USD)	4 (0.04 USD)
BED_TAX	3 %	FLAT_FEE	VAT	0	0

• Item Total: 154 (1.54 USD)

• Total Tax: 4 (0.04 USD)

Case 11

• Item (price: 100 (1 USD), quantity: 2)

• Taxes:

Tax Type	Tax Value	Tax Per	Apply To	Tax Per Item	Total Tax
VAT	10 %	PER_QUANTITY	NET_PRICE	10 (0.1 USD)	20 (0.2 USD)
BED_TAX	20 %	FLAT_FEE	VAT	22 (0.22 USD)	22 (0.22 USD)
COUNTRY_TAX	15 %	FLAT_FEE	MAINTENANCE_FEE	0	0

• Item Total: 242 (2.42 USD)

• Total Tax: 42 (0.42 USD)