Sales Tax on Discount

Author	Topic »
sharonchinn Advanced Member USA 349 Posts	Posted - 01/30/2026 : 08:57:26 I'm trying to fine tune my sales tax calculations. I only charge 6% Kentucky sales tax on items that are shipped within Kentucky. I've noticed the sales tax is being calculated on the order total before discounts, but as far as I know, I only need to charge sales tax on the net purchase. Is there a way to fix the sales tax calculation in ECT?
Vince Administrator 43274 Posts	Posted - 01/31/2026 : 06:22:04 Hi Sharon Discounts should be applied after discounts as you correctly mention, but that has always been the case. Is it possible this is actually tax added to shipping that seems to be extra state tax on the products? Vince Click Here for Shopping Cart Software Click Here to sign up for our newsletter Click Here for the latest updater
sharonchinn Advanced Member USA 349 Posts	Posted - 01/31/2026 : 07:11:39 There is no shipping on this order since it is a digital download. Order Total: $8.00 Discounts: $3.50 State Tax - 6%: $0.48 Grand Total: $4.98
sharonchinn Advanced Member USA 349 Posts	Posted - 01/31/2026 : 07:14:29 I'm looking at this order a little more closely and just noticed the discount is from loyalty points. Are they treated differently than a regular discount?
Vince Administrator 43274 Posts	Posted - 01/31/2026 : 10:09:20 Hi Sharon Yes, as loyalty points are really seen as a method of payment rather than as a discount. Vince Click Here for Shopping Cart Software Click Here to sign up for our newsletter Click Here for the latest updater
sharonchinn Advanced Member USA 349 Posts	Posted - 01/31/2026 : 10:42:29 Is there a way to separate them when I import data into QuickBooks since the sales receipt download detail report just lump loyalty points and other discounts into the total discount field vs. a separating them?
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