EXAMPLE: A customer wants an item shipped to California, but their billing address is in Florida. You have created a California tax of 7.5%, and you have set the Based on to Shipping address. The tax you have created will be applied to this customer, if you have chosen Billing address, the tax will not be applied.
If the client’s country and state (if any) match the tax, the system checks whether the ZIP code or the range of ZIP codes of the configured tax match the client’s address. If you have not entered a ZIP code, the system checks whether the city matches, and if you have not entered a city, the system checks whether the country matches.
NOTE: You can list counties on the checkout page. For more information, see Checkout widget » Step 10.
EXAMPLE: Some locations might have a non-standard tax applied to books or songs.
EXAMPLE: Food and medicines are often tax free.
EXAMPLE: Assume an item costs 110 and the tax is 10%. When tax is not included in the displayed price, the customer has to pay 121 for the item. When the tax is included, the customer has to pay 110; that is, 100 for the item and 10 for the tax.
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