Price rules for taking orders (new app supporting USA, Europe & LatinAmerica market)

Question

Hi, I'm building a new iPhone app for taking orders. This app will be able to connect to any ERP/Financial/CRM backend in the market.

I have built a previous version for the pocket pc for my local market. Now, I want to launch this for USA, Europe & Latin America.

The app is very simple: have a customer list, price list, inventory, payment of late invoices. Can invoice on the go or generate a quote/order. Is for salesman and freelancers.

My plan is to launch with integrations with Quicken, Office Acounting, Freshbooks, and maybe sales force.

I wonder for this task:

• Is common have more than 1 tax per item? If yes, the taxes are sum togheter (ie: 10&+10%) or applied in sucession (apply 10%, and to the result apply 10%)?
• Is the norm in USA/Europe to show the price of the item before taxes, or after? Or is it best to let the user configure this?
• How critical is the support of multiple currencies?
• Is it common to have discounts per item?

Answer 1

The norm in USA/Europe is show the price of the item before taxes, or after taxes? Is best idea let the user configure this?

I don't know about the rest of the world, but in The Netherlands showing the price after or before taxes is totally dependent on the target market. Business customers want prices before taxes, since their businesses can reclaim the taxes (VAT). Private individuals want prices after taxes.

Answer 2

In the USA, prices for most goods are displayed before taxes. There are a few exceptions to this, notably gasoline, which must include all taxes (I think by law). Since I don't know what a "take order" is, I'll refrain from commenting on your other bullet points.

Answer 3

For the first bullet, it depends on the laws. In Quebec, the provincial tax is applied on top of the federal tax, while in Ontario, the provicial tax is only charged on the total of the items, and does not take into account the value of the other tax. This concept commonly known as "tax on tax" depends on the jurisdiction in which the tax laws were made.

For the second bullet, whether or not you include the tax in the cost of the item is entirely dependant on who you are selling to. In Canada, the tax usually isn't included. However, from my understanding, in EU, the VAT is included.

Answer 4

Is common have more than 1 tax per item?

yes in some US jurisdictions there is:

• State Sales Tax
• City Sales Tax
• County Sales Tax
• Entertainment District Sales Tax
• Watershed Sales tax
• Metropolitan Airport Commission Sales Tax

just to name a few that I've come across.

Usually they are calculated individually then summed into the total. for instance

if the Item cost $100

and there was State Tax=7%,

City Tax=1.5%

and County Tax= 1.2%

you would add $7.00 + $1.50 + $1.2 to $100.00

for a total of $109.70

Answer 5

Thanks to all.

"Take a order" is like invoicing but before do the actual payment & shipping (look like I need a dictionary on this ;))