Setting up Sales Tax on Shipping Charges
page last edited on 22 March 2019
Some states consider shipping charges to be a necessary part of a taxable eCommerce transaction, and require online sellers to charge sales tax on delivery charges.
To configure a shipping tax:
Locate the Click here to specify tax rates that will apply only to shipping charges link on the Sales tax configuration page (Store setup > Taxes) and click on it to specify tax rates that will apply only to shipping charges:
Click the the New Rate button
Define a zone the tax will be applied to:
Set a tax rate in %:
Click Save changes to make the settings active.
If you have Tax Classes defined, the shipping tax set up will look as follows:
So you’ll also need to define a tax class applicable to the shipping tax you are setting.
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