Tax Setup Checklist
page last edited on 27 March 2019
Configuring taxes is a tricky but vital part of an e-commerce business, as you can’t start selling online if taxes are not configured properly in your store.
Please rememeber that you should consult your local tax authority on the correct tax rates you should charge and on the legal procedures that are involved before configuring any tax rates in your store!
This guide is aimed at making the tax set-up process straightforward.
The checklist below outlines all of the steps that you need to take to configure taxes in an X-Cart based store properly. It may be helpful to print this checklist to easily reference it throughout the taxes setup process.
Consult your local tax authority on the tax laws applicable to your business and the tax rates that should be configured in your store.
Choose and install an addon to configure taxes depending on the rates you need to set up.
Manual tax configuration:
- Value Added Tax / Goods and Services Tax - For any country with VAT/GST taxation
- Sales Tax - For the US sales tax
- Canadian Taxes - For Canadian GST, PST, QST or HST taxes.
Automated tax configuration:
Assign Tax Classes to every product in your store.
You can create your custom tax classes or use the “Default tax class” that is assigned to all your products by default.
- Configure the address zones the taxes will be set up for. You will need these zones to use different tax rates based on the customer address.
Make sure the tax zones do not overlap as this may cause an incorrect tax rate calculation and repesentation at checkout.
- If you are going to need different tax rates for different customer membership levels, ensure that the necessary user membership levels have been set up.
If you are going to need tax exemptions for different groups of products and/or customers, check if tax exemptions are supported by the addon you’ve chosen for taxes configuration.
If not, install and configure the Tax Exempt addon.
- Configure the tax rates using the addon chosen at step 2 of this guide. Use the respective addon manuals for help:
- Test the taxes configuration by placing an order in the storefront.
Help make this document better
This guide, as well as the rest of our docs, are open-source and available on GitHub.