This is where you setup the tax rates for your store. Start by setting up the country you're doing business in, then adjust the sub-regions within that country.
To add Tax Rates:
- Click the 'Add New' button. Start by setting up the country you're doing business in, then adjust the sub-regions within that country.
- Click on the existing percentage to adjust the tax rate for a specific sub-region. (i.e. State Tax Rates). Once you have entered the adjusted rate, click 'Save'.
- When you are finished adjusting all the sub-rates for the current country, click the 'Back to Rates list' link.
- If you need to add more country tax rates, complete steps 1 - 3 above.
To edit a tax rate click the 'edit' link to the left of the rate you are wanting to edit. Next, make the necessary adjustments by following steps 2 and 3 above.
To remove an entire tax rate, check the box to the left of the country's name and then click the 'Archive' button. To remove a sub-region's tax rate, click the 'edit' link to the left of the country you are wanting to edit. Next, uncheck the box to the left of the sub-region's name and click the 'Save Details' button.
Charging Tax on Shipping
Some states require that the shipping costs also be taxed. To specify which states should charge shipping, edit the overall tax rate first by clicking the Country of choice. Next, you'll see a checkbox for each sub region (state). Check the boxes for those states that should have the shipping costs taxed.
Tax Exempt Orders
You can setup tax exempt orders by checking the box within your store settings area that says 'Allow Tax Exempt Numbers'. This will enable a text box for your customer to enter a tax exempt number that will be displayed to you when the order is received. At this time, the customer will still be charged tax, and you will manually refund the tax cost back to the customer once the order is received and reviewed. This text is displayed with the tax exempt number entry area. "You'll still be charged tax now, but once we verify your tax exempt status, we'll issue you a refund equal to the tax collected."