Set Up a Compound Tax
Compound taxes require at least two impositions. Once you have at least two impositions created in your tax profile, Compounding activates and can be clicked.
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On the Tax Profiles screen, select the tax profile that requires a compound tax.
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Click Compounding.
The Compound Tax Configuration screen opens.
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In the Taxes or Fees list, select the imposition that is applied after another tax has been applied.
This tax is applied second.
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In the Adds Tax To column, select the imposition to which the compound tax is applied.
This tax is applied first.
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Click Ok.
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Click Save.
A message appears to let you know that the tax profile you edited has been updated successfully.
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Click OK.