Setting up Taxes

In this article :

1. Steps on how to set up taxes
2. Tax settings
3. 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