Setting up Sales Tax Rates
page last edited on 19 March 2019
You need to set up sales tax rates to configure your sales tax. Depending on whether you need to set up general tax rates or tax rates that apply to shipping charges, use the appropriate section: General tax rates or Tax rates on shipping cost.
The procedure for setting up general tax rates and tax rates on shipping cost is essentially the same:
Click the New rate button.
In the section that expands below, provide information about your new sales tax rate:
- Zone: Specify the address zone the tax rate should be applied to. The tax rate will be applied to the orders of the customers whose address belongs to the selected address zone. Whether it is their Billing or Shipping address depends on the option selected in the Address for sales tax calculation field in Common Tax Settings.
- Tax class: Specify the type of products (tax class) the tax rate should be applied to.
If you select the Default tax class option here, the tax rate will be applied to all the products that have the default tax class assigned.
- User membership: Specify the user membership level the tax rate should be applied to. The option Ignore membership allows you to create a tax rate that will be applied to all orders irrespective of the buyer’s membership.
“User membership” column becomes available when the “Use the same tax rates for all user membership levels” option in Common Tax Settings is disabled.
Taxable base: Specify the type of costs your tax rate calculation should be based on.
The “Taxable base” column becomes available for general tax rates when the option Individual settings for every rate is selected in the “Taxable base” field in Common Tax Settings. It’s not possible to specify the taxable base for the Tax rates on shipping cost, because in this case the taxable base is always the same: the cost of shipping.
- Rate: Specify the tax rate amount as a percentage of the selected taxable base.
- If necessary, use the New rate button to add rows for more tax rates. Complete the fields in each row as you require.
- Click the Save changes button at the bottom of the page to save the changes.
Once configured and enabled, sales tax calculation can be disabled/re-enabled using the On/Off button to the right of the Tax title field on the Sales tax panel in the Taxes section (Store setup > Taxes). When sales tax calculation is enabled, the On/Off icon on the button is green. When it is disabled, the icon is grey.
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