When you have cross-border sales or received purchase needs from foreign consumers, merchants may need to collect taxes on the products you sell due to local rules, to declare and pay to the treasury. If you need to adopt a tax collection model with tax-included pricing, SHOPLINE provides "All Shops need tax collection" feature to make all your store products tax-inclusive, so no additional tax will be calculated at checkout.
In this article, you'll find:
1. Before you begin
- Whether your country of sale need to charge value-added tax (VAT)/goods and services tax (GST) from customers?
- Whether the products you sell are taxable (For example, digital goods are subject to VAT in the European Union）
- Whether you need to charge freight tax in the area where you sell
Seek advice from professionals
SHOPLINE recommends you seek tax experts to understand the tax-related laws of the country/region where you want to sell. Merchants should always confirm to the local tax authority or accountant that the tax rate you charge your customers is correct and that you have correctly declared and paid taxes.
If your product or the store charges customers sales tax/shipping duty, it is recommended that you specify the tax rules in the shopping description, product summary, and describe the taxation in the shipping option. This makes sure that customers are fully notified of the arrangements before checking out.
Note: This function only calculates taxes for the store and collects them from customers. SHOPLINE does not declare or pay taxes for the store.
2. How to set regional tax
Go to [SHOPLINE Admin Panel] > [Settings] > [Taxes Settings]. Click Add Region to select the country/region where you want to set tax.
A list of country/region will pop up after clicking Add Region. Select the tax area and the system will automatically add it to the tax area list.
Note: Use the keyboard shortcut to speed up your search (Windows: Ctrl + F; Mac: Command + F).
1. Toggle ON for All products include tax.
2. Fill in the name of the tax and the tax rate.
You can also toggle ON for Automatically Calculate Tax Rate to automatically bring in the sales tax rate of the country/region.
3. Finally, click Update in the lower right corner to complete the setting.
3. Display on pages
Customer check-out page
After the tax setting is completed and updated, once the customer selects the country with the tax setting for the shipping destination at checkout, a reminder will appear under the total amount.
Note: The reminder text = tax name + tax rate set up by merchants + actual tax calculated by the system.
Order details in the Admin
Merchants can view the tax information on the order details page, but cannot edit the tax amount to the order.
Pages below will display the tax-included amount:
- Order checkout/confirmation page
- Customer's order confirmation email
- Merchant's order confirmation email
4. Tax calculation method
The tax is calculated in the way of [total order amount*tax rate/(100%+tax rate)]
If the tax amount has a decimal place, the tax amount will be rounded to this digit according to the number of decimal places taken in the store currency.
For example, the total order amount is 900, with a 7% VAT. The store currency is TWD. The actual VAT charged for the order is 900*0.07/(100%+0.07)=59 (There is no decimal point for TWD, so it is rounded to the nearest single digit).
- If the toggle of "all prices include tax" is OFF, the tax calculation and presentation will use the general tax setting method. Please refer to Taxes Setting for details.
- Only one tax type can be set for each country/region.
- The "all prices include tax" feature will be only applied to the orders created after the setup. Previous orders will not be applied.
- Order editing in Admin Panel and order splitting currently do not support automatic tax calculation.
- Taxes are calculated based on the total amount of the order. Tax calculations for individual products are currently not supported.
- Support open API to obtain order tax information.
- The feature does not support orders created in the Admin Panel, in the message center, or via POS systems.