You often need to apply sales tax to orders. Tax rates can be specified for each state, province and/or country.
How Taxes are Applied to Orders
Based on the Charge Tax By setting, the tax rates for state/province and/or country will be applied to the order during checkout. If Tax Rates are not configured, no taxes will be charged. Rules set in this module apply globally to all products unless you opt the product out of these rules in the Advanced Options tab of the Edit Product window.
Charge Tax By
Choose here to determine whether the taxes will be calculated based on the Bill-to address or the address to which the order will be shipped.
Include shipping charges in tax calculation?
Choose here to determine whether the taxes will be calculated based on the order sub-total which does not include shipping or to calculate taxes based on the entire order total including shipping charges.
United States & Canada
Set State or Provincial taxes here by first selecting the state/province in the dropdown. Fill in the tax amount and click Add/save. Repeat steps for each state/province for which you wish to apply taxes. As each state/province is added it will appear in the list to the right along with an Edit and Delete option.
For international tax rates, you must first enter a valid VAT/GST registration number to charge and collect VAT/GST taxes.Click Save Tax Options after entering valid information.
Next, set country taxes here by first selecting the country in the dropdown. Fill in the tax amount and click Add/save. Repeat steps for each country for which you wish to apply taxes. As each country is added it will appear in the list to the right along with an Edit and Delete option.