implement a discount and waive tax computation specifically for Canadian customers

Question

implement a discount and waive tax computation specifically for Canadian customers

I have encountered a problem while developing a POS application for a client in Canada. My issue lies in the tax calculation process, where I am unsure how to handle discounts and tax exemptions properly. Here is the scenario: I have 2 items - item 1 priced at $10 and item 2 priced at $2 (tax exempt). Before applying the tax rate of 13%, I need to apply a discount of $5 on the total bill. How can I correctly calculate the total amount of taxes after applying the discount?

The desired result is obtaining the tax amount after the discount has been applied. The tax rate is fixed at 13%.

Item 1: $10 Item 2: $2 (Tax Exempt)

Subtotal: $12 Discount: $5 Tax Amount: ?

javascript vue.js calculation

Answer 1

Answer №1

Follow these steps to achieve the desired outcome:

Arrange the items based on price, starting with the most expensive.
Implement the discount onto the sorted list of items until no discount remains.
Add up the prices of the sorted list to determine the discounted subtotal.
Total up the prices of the taxable items in that list to calculate the taxable amount.
Apply the tax rate to the taxable amount and combine it with the subtotal to obtain the final total.

const ITEMS = [
  { price: 2.00, taxExempt: true },
  { price: 10.00, taxExempt: false },
  { price: 8.25, taxExempt: false },
]
const DISCOUNT = 12
const TAX = 0.13

const applyDiscount = (items, discount) => {
  // Step 1️⃣ sort by price, from highest to lowest
  items = items.slice().sort((a,b) => b.price - a.price)

  // Step 2️⃣
  return items.map(item => {
    let price = item.price
    const itemDiscount = Math.min(price, discount) 
    if (itemDiscount > 0) {
      price -= itemDiscount
      discount -= itemDiscount
    }
    return { ...item, price, origPrice: item.price, itemDiscount }
  })
}

const itemsWithDiscount = applyDiscount(ITEMS, DISCOUNT)
const sumPrices = arr => arr.map(x => x.price).reduce((p,c) => p + c, 0)
const subtotal = sumPrices(itemsWithDiscount) // Step 3️⃣
const taxableAmt = sumPrices(itemsWithDiscount.filter(x => !x.taxExempt)) // Step 4️⃣
const total = subtotal + (taxableAmt * TAX) // Step 5️⃣

console.log('items after discount', itemsWithDiscount)
console.log('subtotal: $' + subtotal.toFixed(2) + ' (taxable: $' + taxableAmt.toFixed(2) + ')')
console.log('tax: $' + (taxableAmt * TAX).toFixed(2) + ' (' + (TAX * 100) + '%)')
console.log('total: $' + total.toFixed(2))

Answer 2

Follow these steps to achieve the desired outcome:

Arrange the items based on price, starting with the most expensive.
Implement the discount onto the sorted list of items until no discount remains.
Add up the prices of the sorted list to determine the discounted subtotal.
Total up the prices of the taxable items in that list to calculate the taxable amount.
Apply the tax rate to the taxable amount and combine it with the subtotal to obtain the final total.

const ITEMS = [
  { price: 2.00, taxExempt: true },
  { price: 10.00, taxExempt: false },
  { price: 8.25, taxExempt: false },
]
const DISCOUNT = 12
const TAX = 0.13

const applyDiscount = (items, discount) => {
  // Step 1️⃣ sort by price, from highest to lowest
  items = items.slice().sort((a,b) => b.price - a.price)

  // Step 2️⃣
  return items.map(item => {
    let price = item.price
    const itemDiscount = Math.min(price, discount) 
    if (itemDiscount > 0) {
      price -= itemDiscount
      discount -= itemDiscount
    }
    return { ...item, price, origPrice: item.price, itemDiscount }
  })
}

const itemsWithDiscount = applyDiscount(ITEMS, DISCOUNT)
const sumPrices = arr => arr.map(x => x.price).reduce((p,c) => p + c, 0)
const subtotal = sumPrices(itemsWithDiscount) // Step 3️⃣
const taxableAmt = sumPrices(itemsWithDiscount.filter(x => !x.taxExempt)) // Step 4️⃣
const total = subtotal + (taxableAmt * TAX) // Step 5️⃣

console.log('items after discount', itemsWithDiscount)
console.log('subtotal: $' + subtotal.toFixed(2) + ' (taxable: $' + taxableAmt.toFixed(2) + ')')
console.log('tax: $' + (taxableAmt * TAX).toFixed(2) + ' (' + (TAX * 100) + '%)')
console.log('total: $' + total.toFixed(2))

implement a discount and waive tax computation specifically for Canadian customers

Answer №1

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