I have the tax rate set for 12% yet it calculates at 10.7 percent.

Example of return showing in booking form :
Item price: CAD507.84 With supp.:CAD727.84
Item deposit: CAD250.00 Tax (12%):CAD77.98

Tax should be showing: CAD 87.34

We are using:
Version: 2.0.3
Date: 2013-05-16

Screen shot of my Tax settings:
awesomescreenshot.com/077235hrd3

Hello, Booking requires prices with tax.
This is calculation: 727.84 /112 * 12 = 77.98
Please setup prices with tax.

I must have misunderstood your reply. Hopefully you looked at my screenshot. I have tax set in the system. I put 12% in the tax box in the booking system configuration. I selected that tax in the item price drop down menu for tax.

The return the customer gets after booking shows this:
Item price: CAD507.84 With supp.:CAD727.84
Item deposit: CAD250.00 Tax (12%):CAD77.98


The total price with supplements is CAD727.84
12 percent of 727.84 is 87.34 not 77.98.

Your setting of tax rate is OK. Does price value include tax value as well? I mean setting in bookable item administration on bookmark prices. You have to setup prices with tax and not prices without tax.

Ok, but then does the system also add the 12% after that or is it simply showing the tax from the total?

Right now I have prices in the Value* box without tax

Example:
Value* = 92

This should be 103.04 with 12% added in the Prices Value* field, then the system just shows what the tax is off that Value in the booking form? If so, is that the same for the Supplements as well?