Basic Tax Setup
The basic tax setup page allows you to setup your taxes quickly.
The basic tax setup can either be used as a starting point, before configuring taxes through the advanced tax configuration pages, to setup your taxes for simple tax scenarios or to just quickly setup taxes.
The vendor section:
This section allows you to choose the vendor you want to create a tax rate for. Set the vendor setting to global, if you want to create a global tax rate.
Depending on the selected vendor, added tax rates and tax zones are created for the selected vendor only. Global tax rates and tax zones are only created when global is selected as vendor.
The tax rate section:
This section allows you to setup the tax rate itself and related settings, especially the tax rate and the tax name, the priority, that defines how a tax rate is selected during calculations and the user/customer type the tax rate is valid for.
The following options are available:
| Field | Description |
|---|---|
| Tax Rate (%) | The tax rate in percent. |
| Tax Rate Description | The description of the tax rate. |
| Rate priority | The priority of this tax rate related to other tax rates that match when applied to items. Please note: During checkout, tax rates with the same priority are added, rates with different priority are compounded. |
| Apply to | Set, what type of customers the tax rate applies to. You can set either normal customers (simple users) or three different levels of wholesale users (wholesaler level1-3). |
The tax class section:
This section allows you to select a tax class for your tax rate.
Tax classes are basically types of items or services. A tax is only applied to products, if products are set to this tax class.
Please note: As default a “General” tax class is predefined for all products. If you need other or more tax classes, you should create the tax classes you need, before you setup tax rates for those tax classes.
Example: If you are selling books and beverages and the books have a different tax than the beverages you sell, you would create two different tax rates and set those to different tax classes, e.g. a “books tax class” and a “beverages tax class”. When setting up a product in the shop, you would then select the matching tax class for the product (e.g. the “books tax class”, if you create a book product). During checkout, only the tax rate with the tax class matching a product’s tax class would be applied to a product (e.g. only the “books tax class” would be applied, if you checkout with before-mentioned book product).
The tax zone section:
This section allows you to setup the zone where the tax is valid.
Usually a tax is either applied depending on the customer’s location or the businesses location. If a tax rate is only valid for a certain area you can define the area the tax is valid for here.
The following options are available:
| Field | Description |
|---|---|
| Country | The country, the tax rate is set for. |
| State | The state, the tax rate is set for . |
| Zip/Postal Code | The zip or postal code the tax rate is set for. |
A tax rate will only be applied to a product, if all the criteria match with the customer and the products added to the shopping cart during checkout.
e.g.: If you setup a tax rate for books, that is only valid, if the customer is a level 1 wholesaler in Canada, the tax will only be applied to a product, if all the criteria match.
- Click on the “Save Changes” button to add a tax rate to your database.
- Click on the “Reset Form” button to reset any changes made to the form.
- Click on the “Tax Management” button to open the tax management page, where you can choose other tax related functions.
The Taxes List section:
The taxes list section shows a list with an overview of all your current tax rates. Shown data includes, the tax rate ID, tax rate, tax rate description, priority, class name, zone name and vendor.
The tax rates list is sorted by vendor and priority.
The following fields are shown:
| Field | Description |
|---|---|
| Tax Rate ID | The internal tax rate ID |
| Tax Rate | The tax rate in percent |
| Tax Rate Description | The description of the tax rate |
| Priority | The tax rate priority |
| Class Name | The tax class associated with the tax rate |
| Zone Name | The tax zone associated with the tax rat |
| Vendor | The vendor ID, if the tax rate is vendor specific, otherwise “Global”, if the tax rate is a global tax rate |
Several actions are available at the right side of each list entry. Click on the edit icon to edit the tax rate at the advanced tax configuration page. Click on the delete icon to delete the tax rate.
Deleting a tax rate will NOT delete any tax zones or tax classes associated with the tax rate.