When your store develops an international market, or there are foreign consumers buying to be shipped to different countries around the world, you may need to collect taxes on the goods sold, and declare and pay to the government. Although tax laws and related regulations are very complicated and may change frequently, you can make use of our "Taxes Setting" feature to handle the most common sales tax calculation. This article will introduce:
- Notes before setting
- How to set general region taxes
- How to set US / Canada states taxes
- Special Notice for US / Canada
- All shop or part of products collect taxes
- How taxes fee display
Notes before setting
There are 3 things you need to confirm before set up:
- Does your country of sale charge sales tax to customers?
- If the products you sell are taxable (For example: 3C products are subject to digital product tax in the EU)
- Does the area you sell charge freight taxes?
It is also recommended that you seek for professional help to understand the tax laws of the country where you want to sell, and you should always confirm with the local tax authority or accountant that the tax rate you charge the customer is correct, and confirm that the tax is correctly reported and paid.
If your product or store collects sales tax / freight tax from customers, it is recommended that you specify the tax rules in the shopping instructions, product descriptions, and mention the freight tax in shipping method to ensure customers acknowledge it before checkout.
This function only collects taxes and charges from customers in the store, SHOPLINE does not file or remit your sales taxes for you.
How to set general region taxes
Step 1: Go to "Setting" >> "Taxes Settings"
Step 2: Add Region which has tax
Click "Add Region" and select tax area.
it will appear area/region list after you click "Add Region". Take setting Australia taxes for example, click "Australia" and do the next step.
Order of the list is based on the first alphabet of the country name. If you want to search quickly, you can use the search function of your browser (Windows：Ctrl +F；Mac：Command+F).
Step 3: Set up sales tax
Chose the country/region that you want. Click "Edit" and start to setup Australia taxes.
Firstly, you can setup tax name. If the tax name is blank, system will show it as "GST" (Where are the GST show can referent How taxes fee display ). Secondly, you can fill in the tax rate. If there is no tax in that area, you can leave it blank.
Also You can turn on "Automatically calculate tax rates" toggle so that the system will automatically grab the latest consumer tax.
Step 4: Setup Freight tax
You also specify whether you will charge freight taxes on shipping. Please click "Update" after you edit settings.
Step 5: Check your setting after editing
The tax area you setup will display on listing page.
How to set US / Canada states Taxes
The taxes rate of United States and Canada are according to their states, regions and cities, so the setting steps will be different from the general regions. Examples of setting United States taxes：
Step 1: Select United States in region list
Go to "Settings" >> "Taxes Settings" >> Click "Add Region"
Select United States in the list. Order of the list is based on the first alphabet of the country name. If you want to search quickly, you can use the search function of your browser (Windows：Ctrl + F；Mac：Command + F ).
Click "Edit" and start to setup United States taxes.
Step 2：Setup states tax
The taxes rate of United States are according to their states, regions and cities. Please click "Add" button to add the applicable state.
After selecting applicable states, please click "OK" on the bottom right corner.
Those states you selected will show in the in state list and you can start to setup sale tax.
If this is too complicated, you can turn on the "automatically calculate tax rates", it will shows the default sales tax and the rates are updated regularly.
If the new tax in a district, the district tax rate will replace the whole territory.
Assuming the customer's delivery address is Los Angeles, California, the tax rate will be calculated at 9.5% at checkout.
Step 3: Setup Freight tax
If you need to charge freight tax, please click "Add".
After selecting applicable states, please click "OK" on the bottom right corner.
Those states you selected will show in the state list and you can start to setup freight tax. Please click "Update" after you edit settings.
Step 4: Check your setting after editing
The tax area you setup will display on listing page.
Special Notice for US / Canada
1. Reminder in checkout process
When you have setup tax fee for US / Canada, there will be a reminder message "Please update tax and click Calculate Tax before checkout" in checkout page (show on the top of "Place Order" ). Customer must click on "calculate tax" in order to place order.
As the taxes rate of United States and Canada are according to their states, regions and cities, Tax rate will be calculate by customers’ address enter in delivery details. If customer change the delivery address, they must click on "calculate tax" again before place order.
2. US/ Canada tax rate setting and scenarios
It is suggested that you can click "right-click" > "open picture in new tab" on the picture to expand and view the chart, or click "right-click" > "save picture" to download and view.
All / Partial Products need Tax Collection
1. only partial products
If only partial products need to charge tax, please do not turn on "All Shops need Tax Collection" toggle.
Please go to "Product & Categories" > My Products > Edit > "Quantity & Pricing" Tab to turn on "Charge customers additional consumption tax" toggle.
2. All products
If All products need to charge tax, Please turn on "All Shops need Tax Collection" toggle in Settings > Taxes Settings.
When you turn on this toggle, you will see below popup reminder:
After enabling this function, ALL shops need tax collection. When you create new product,"Charge customers additional consumption tax" field on product edit page will display default value "Applied to all".
How taxes display and calculate in storefront
1. Store front: Checkout process
When the destination choose has taxes setting, tax fee will show in "Order Summary"
Customer can click into the " ? " logo to check the tax calculation.
Customer can also check the tax fee in their order confirmation page.
2. Admin: Orders Details
You can click into the " ? " logo to check the tax calculation.
3. Report: Order Report
You can select "tax fee" under "order" when export the Order Report (default as unselect).
4. Report: Order Invoice
Tax fee will show in order invoice.
5. Report: Packing Slip
Tax fee will show in packing slip.
Comments