Articles on: Online Store (Website)

Setting up Taxes

In this article :

Steps on how to set up taxes
Tax settings
Tips

1. Steps on how to set up taxes



Step 1 : EasyStore Settings > Taxes > Add tax rate





Step 2 : Select Country > Tax Name > Country Tax





Step 3 : Manage Sub-regions





Step 4 : It would appear a list of sub-regions tax here:



Step 5 : Save

2. Tax settings



Choose the way to charge tax :
Shipping Address: Calculate tax based on where your products ship to.
Billing Address: Calculate tax based on where your customers receive invoices.

Choose calculation (optional) :
Products prices are inclusive of taxes - Display price would include the tax.
Charge tax on shipping rates - Shipping rate would be subjected to tax.



3. Tips:



Added to % federal tax

Country Tax = 6%,
Tax Rate = 5 %, it will be 5 % + 6 % = 11 %
Calculation as below :
Product price = $ 10.00
$10.00 * (6 % + 5 %) = $ 1.10
Total : $ 10 + $1.10 = $ 11.10



Instead of % federal tax - Charge the rate you set for the region instead of the country tax

Country Tax = 6 %,
Tax Rate = 5 %, it will charge 5 % instead of 6 % for the particular region
Calculation as below:
Product price = $ 10.00
$10.00 * 5 % = $ 0.50
Total : $ 10 + $ 0.50 = $ 10.50



Compounded on top of % federal tax - Add % on top of the country tax

Country Tax = 6 %,
Tax Rate = 5 %, it would charge 5% on top of the 6% tax amount.
Calculation as below:
Product price = $ 10.00
$10.00 * 6 % = $ 0.60
Add 5 % on top of 6 % : $ 0.60 * 5% = $ 0.03
Total : $ 10 + $ 0.60 + $ 0.03 = $ 10.63

Updated on: 06/10/2023

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