Tax settings dictate how much sales tax customers are charged at Checkout. If your country has a single tax rate, create a single Tax Bands, otherwise, create different rates for different regions within Tax Bands.
Turn Taxes On
If you want to use taxes then you must select this option! you can then choose what sort of tax you want to use and how you want to set it up using the options outlined below.
Product prices are tax inclusive/exclusive
Are your taxes included in the product price? if they are then you want to select inclusive. This will then display the total amount of tax (for all cart items) when the buyer is at the checkout. The total sale cost will not change
Are your products exclusive of tax? If this is the case then the tax will be added onto the total amount at the checkout.
Product Specific Tax
- Add per product tax to tax percentage if product has a specific tax rate
- Replace tax percentage with product specific tax rate
- Apply tax when Billing and Shipping Country is the same as Shops base location
- Apply tax when Billing Country is the same as Shops base location
- Apply tax when Shipping Country is the same as Shops base location
Tax rates can be created and applied on a per country basis. to create a new tax rate simply enter in the percentage amount and select the country you would like to apply this rate to. If the check box “apply to shipping” is selected then the tax rate will be applied if the country it was created for is selected as the delivery / shipping country on the checkout form. If you leave this un-ticked the new tax rate will be applied to the billing country.
To delete the tax rate use the delete link – be-aware this will remove the rate from any products it was applied to.
Tax bands are tax rules that you can create and apply on a per product basis, for example alcohol in your country could have a higher tax rate than other products. Tax bands are perfect for this to create a tax band click the link add new tax band, give it a name eg “Alcohol New Zealand” select the country (New Zealand) and enter in the new tax rate.
This tax band can now be applied to a product and the different tax rate will be applied and over right the normal rate for that country.
Note: For tax bands to work. Tax must be set to tax inclusive.
Tax Included in Price
Does your country require tax inclusive pricing? If so, select “yes”.