Checkout Config: Tax

Checkout > Configuration > Tax

1. Calculate Tax

This is set to “No”  by default. This option turns on Global Tax calculation, meaning that when turned on, tax will be calculated and added to the order total.

2. Tax Name

This is set to VAT by default. This is the descriptive title for this field and may be changed to any word/abbreviation eg. TAX, VAT, GST, IVA. This will only display as an option if Calculate Tax is turned on.

3. Tax Percentage

This is set to 14%  by default. Remember this is a percentage of the total invoice and not a fixed amount it is the percent value to be added as tax to the total value of order. This will only display as an option if Calculate Tax is turned on.

4. Product Price Display

This determines whether or not the prices of products are shown inclusive or exclusive of the tax amount configured here. Depending on the option selected, a little (incl. TAX) or (excl. TAX) is shown next to the product prices.

5. Include Shipping

This is set to “No” by default. If you wish for the shipping cost to be included in the total that has tax calculated on it, then set this to “Yes“. In most cases this will remain as “No” as tax is calculated on product prices, shipping is separate.

6. Addtional Tax Rates

These are exceptions from the global tax rate set above. Simply specify the tax amount in % then choose the country and region that recieves that amount of tax. Note that not all countries have a configurable region to select from, in which case “All States/Provinces” is defaulted when the tax rate is saved.

7. Add Tax Rate

Click the Add Tax Rate button to insert a new exception. This can be done unlimited times. This button needs to be clicked in order to save the previous tax amount you created. You will see a yellow box stating “Tax rate has been saved“