I am doing research on the implementation of certain tax rules specific for Argentina.
A little context:
- There are basically 2 VAT rules depending on the product type: 21% and 10.5%, they are mutually exclusive
- There are several tax rules based on the customer type, and billing province which are completely unrelated with the products and are calculated based on order amount when the order exceeds a minimum taxable amount.
The first ones are pretty straightfoward.
The second ones are tricky. They are called "percepciones" (for all the research I have done, the closest translation is "collection at source") and the idea behind them is that the store acts as the IRS and charges a little extra to the customer which then the customer will deduct from a certain annual or monthly tax.
For example, lets assume a product valued $200.00 (tax excl.) with 21% VAT. The store has to collect a 2% gross revenue at source on orders $100 and up, so the order detail would be:
- 1 x Product = $200.00
- VAT 21% = $42.00
- Gross revenue 2% = $4.00
- Total charged = $246.00
Of course the 2% rate is variable depending on customer billing address and customer type (companies have different rates and taxes than people).
I guess what's really killing me is the minimum amount which cannot be set up via Magento.
Also, setting aside the minimum amount, the multiple combination of product taxes and customer taxes would lead to having to create a rule for each possible combination.
For example, a customer could be exempt from paying VAT, but not gross revenue tax.
I would really appreciate any ideas you can throw at me about how to approach this, I am in "brainstorming mode" right now.
For the time being I am seriously considering ignoring Magento tax engine altogether and just placing a custom total hardcoding all of this logic (maybe set up some panel in the backend to twitch the parameters)