In this video, learn how to apply taxes on other taxes, such as eco-taxes, with the "Affect Base of Subsequent Taxes" option in Odoo.
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1. What does the "Affect Base of Subsequent Taxes" option do when activated on a tax?
The current tax will be added to the base on which the next tax (listed after the current one in the taxes' list) will be applied. The next tax (listed after the current one in the taxes' list) will be added to the base on which the current tax will be applied. The amount of the tax will be included in the price. It will summon an army of minions.
2. Why is the order of the taxes' list crucial?
It defines the order in which the different taxes are displayed on the invoices, between the subtotal and the total. It defines in which order the taxes are computed. It is not crucial; it only allows us to keep our list well organized. Because taxes that affect the base of subsequent taxes and that are mapped in Fiscal Positions need to be next to each other for them to be correctly applied when you create a new invoice for a customer based abroad or taxed differently.