page last edited on 30 August 2017
According to your country’s laws, you may need to charge different taxes for different types of products. For instance, you may need to calculate sales tax differently for alcohol and non-alcohol products.
Using the tax class functionality in X-Cart 5 you can organize your products into groups according to what sales tax rate calculation rules need to be used for them.
For example, if you have a food store selling both alcohol and non-alcohol products, and you need to calculate sales tax differently for those two groups of products, you will need two tax classes - one for alcohol products and one for non-alcohol products. To make it work, you will need to specify how tax rates should be calculated for each of these tax classes. You will also need to assign a tax class to every product in your store. This way all the products will have appropriate tax rates applied to them.
In X-Cart 5, every product needs to have a tax class assigned to it. By default, new products are created with the Default tax class assigned. If you expect all of your store’s products to use the same tax rates, you do not need to create any additional tax classes - just use the Default tax class for all rates. However, if you are going to have different tax rates for different types of products - like in the example with alcohol and non-alcohol products - then you will need additional tax classes.
Creating Tax Classes
To create a new tax class:
Open the Tax classes tab in the Taxes section (Store setup > Taxes) of your X-Cart admin area:
Click the New tax class button. This adds a new blank field below.
You can click more than once to add multiple fields.
Use the field you have added to enter a name for the new tax class (e.g. “Alcohol” on the sample) and Save changes:
That’s all, the tax class has been created:
Now you can assign it to products and configure tax rates for it.
Assigning Tax Classes to Products
Once you have created the tax classes you require, be sure to assign them to products.
To assign a tax class to a product follow instructions below:
Choose a product you need to assign a tax class to in the Catalog -> Products section of your X-Cart admin and open this product’s details page for editing.
Locate the the Tax class field in the Prices & Inventory section of product details and select the tax class you want to assign to this product.
Click Update product.
Once the tax class has been assigned to a product, this product will use the tax rates defined for this product class.
If you need to assign a tax class to more than one product at a time use the “Products Bulk Edit” feature.
Configuring Rates for Tax Classes
To configure rates for tax classes:
Depending on the tax system you are using open either the Sales tax or the VAT/GST tab in the Taxes section (Store setup -> Taxes) of your X-Cart admin area and click the New rate button in the General tax rates section:
Fill in the fields in the new rate line that will appear:
- Zone : Select the zone from a drop-down the tax is applicable to.
- Tax class : Select the tax class applicable.
- Rate : Set the tax rate in %.
Click Save changes.
That’s it, a tax rate for a tax class is created.
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This guide, as well as the rest of our docs, are open-source and available on GitHub.