Create taxes

  1. On the main menu, choose Ecommerce» Taxes
    The Taxes page opens.
  2. Click Create a tax.
    The Create a tax page opens.
  3. In the Name field, enter a name for the tax.
    For example, enter California Sales Tax.
  4. In Based on dropdown box, select whether the tax is determined according to the shipping or the billing address.

    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.

  5. Select the country and the state (if required) where the product will be delivered and the tax is applied.
  6. For the US, you can narrow the tax application to counties, cities, and ZIP codes.
    To do this expand Narrow location section and fill out one or more of the following:
    • City
    • County
    • ZIP / Post code or a range of codes.

    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.

  7. In Standard rate input field, enter the tax rate as a decimal percent. (For example, 6.125
    • If you have created tax classes, enter the rate for each tax class.

      EXAMPLE: Some locations might have a non-standard tax applied to books or songs.

              
    • If  tax does not apply for a particular tax class,  select the Tax exempt checkbox.

      EXAMPLE: Food and medicines are often tax free.

      .
  8. If the taxing shipping costs is approved, select Apply tax to shipping checkbox.
  9. Select Include in prices displayed on the site checkbox, if you want the tax to be determined in advance and folded into the product price on the website.

    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.

  10. Click Create this tax

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