A Net Weight tax is calculated on the Net weight of a Ticket or Ticket Item.
The formula is Net weight x Sales Unit conversion factor x Rate.
Example of a Net Weight Tax
In 2019, The Province of Ontario required aggregate producers to pay a fee of 20.2 cents/tonne on each tonne of Material removed from a site.
To pass that fee on to Customers, a producer could create a Tax of Type Net Weight with the Rate of 0.202.
Rate is specified as an amount per Invoice Unit. Most often this is an amount per tonne or ton.
Using the example above, the Net Weight Tax on 38.2 tonnes would (rounded up) be 7.72.
Invoice Amount taxes are assumed to be taxable as well.