Your store calculates taxes based on the location from which ordered products are shipped, as well as the location of your customers.
Your store will charge appropriate taxes, such as sales tax in the US, VAT in Europe and Japan, GST in Canada, etc., at checkout, according to regional and national tax rules.
Table of contents
Charge VAT (Inc. VAT Price)
Manage the default tax region (tax-inclusive) price option
Configure a NEW tax region with the tax-inclusive price option
Configure taxes rate for a tax region other than the default one
Configure taxes rate for a tax sub-region
Charge VAT (Prices including VAT)
To make it easier for customers to compare products, businesses are required to provide clear and transparent pricing information.
Since May 28, 2022, a European directive defines the rules for determining the reference price.
Source : www.economie.gouv.fr.
Prices must be displayed in euros, all taxes included (TTC), in a visible and understandable manner.
Enable the Price including tax option in your store's administration. At checkout, an adjusted VAT rate will be applied to the customer based on the tax rules in effect in their country and their region.
Manage the default tax region (tax-inclusive) price option
Once your Region or Regions are configured, you will be able to configure the taxes you charge your customers when they make purchases in the different countries and regions where you sell your products.
- Configure taxes for your default tax region
- From your store's admin, go to Settings → General → Taxes by region → Tax regions.
- The default tax region is Canada.
- The GST tax at 5% is configured by default.
NOTE: If the tax region has sub-regions, you must also define tax rates for each tax sub-region.
Tax regions for some countries, such as the United States, Canada, etc., have a "States," "Provinces," or "Cantons" section on the tax region details page. You can add sub-regions for the country there.
- In the Provinces section, click Create, on the right.
- Configure the following settings: Province, Name, Tax Rate, and Tax Code.
- Check the Combinable box to indicate whether this tax can be combined with the region's default tax rate.
- Click Save.
- Configure taxes for a NEW additional tax region
If you have added an additional region to your store, you will be able to configure the taxes you charge your customers when they make purchases in different countries within that region where you sell your products.
To configure taxes for an additional tax region:
- From your store's admin, go to Settings → General → Taxes by Region → Tax Regions.
- Click the Create button on the right.
- In the Create Tax section, configure the following settings: Country, choose whether it's the Default Tax Rate, Tax Name, Tax Rate, and Tax Code.
- Click Save.
Create a Tax that overrides the default tax rates
You can create a Tax that overrides the default tax rates for selected conditions (for certain products).
- In the Overrides section, click Create.
- In the Create override window, configure the following settings: Name, Tax Rate %, Tax Code.
Check the Combinable box if this tax can be combined with the tax region's default tax rate. - Targets (Optional): Configure the settings: Select the targets to which this tax rate will apply: Products, Search Products, Browse, and Delete.
- Click Add target.
- Click Save.
Once the NEW tax region has been created, you can Delete the default tax region by clicking on the three-dot icon on the right.