Is Quantity mandatory for tax calcualtion

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  • Updated 2 months ago
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I want to know whether quantity impacts the tax calculated. If we pass all items one by one with quantity one will it impact the tax calculation?
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s

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Posted 2 months ago

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Will Clark

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Yes, this could affect tax.  Tennessee has some tax laws that calculate tax differently based on the amount of a single item.  If you pass in a quantity of 1 for something that is technically multiple items, it could throw this calculation off.  This is just one example, and there could be others.
(Edited)
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s

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Thank you for your reply.
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s

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Thanks for your reply, but we do not have Tennessee in our nexus state, 
Our nexus states are 'CA', 'OH', 'NY', 'MA', 'CO', 'TX', 'FL' .
What I meant was, suppose we are send the items separately, even though they are same
Transaction 1:
line number    tax code        amount       quantity
1                     234324          $10                 1
2                     234324          $10                 1,

instead of
line number    tax code       amount         quantity
1                     234324           $10                 2 

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s

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Correcting the above transactions: 
Transaction 1:
line number    tax code        amount       quantity
1                     234324          $10                 1
2                     234324          $10                 1,

instead of
line number    tax code       amount         quantity
1                     234324           $20                 2 
(Edited)
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Chris Walker, Official Rep

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As Will Clark said there are some states where line item quantity will effect the tax calculation. In your example your first transaction could be taxed differently then your second one (depending on state, amount and quantity). 

As a side note your two transactions are not the same, the 'amount is the total line amount and the quantity is used to determine the per item price. You would need the line amount on the second transaction to be $20 to have the same total amount for both transactions.

(Edited)
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s

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Thank you for your reply.