The taxes section gives the ability to set the tax levels for the store's area.
You also have the option of enabling flexible taxes, this is useful if you have to charge different tax amounts to different countries etc.
||With this disabled you will charge a flat rate of tax, with it enabled you have flexible taxes running.
||This can be set to testing or live, recommend you try testing first.
||Country to apply Tax to (If flexible tax is disabled).
||County/State/Zone to apply Tax to (If flexible tax is disabled).
Here you can add, rename, edit or add new tax classes (If flexible tax is disabled).
In the section we will learn how to use the flexible tax option in V4.
This is a complex module to set up.
Step 1 - Set the module to enabled.
Step 2 - Create new Tax Class.
Type in your Tax name, I have used V.A.T. in this example, and click 'Add Tax'.
Step 3 - Set up the Tax Details.
||A name for your reference. Each row must have a unique name. Example: UK V.A.T.
||This is the name of the tax as you want it displayed on the checkout webpages and in receipts. Example: V.A.T.
|Display Reg. Number
||(Optional) If you want your V.A.T number(s) to be displayed on your receipts, then enter them exactly as you want them displayed. Example: V.A.T Number 123456789.
||You can use the status to disable a particular tax.
Step 4 - Setting up the tax rates.
Click on the button.
Step 5 - Setting zones and rates.
||Each product and shipping method will be associated with a single tax class. Usually all products and shipping methods will be associated with the "Standard Tax" class and you should setup all your tax rates/zones with this tax class.
||The country to apply this Tax Class to.
||The county to apply Tax Class to (This is generally used in US stores only).
||This refers to one of the Tax Details setup on the previous page. Example: V.A.T.
||The amount of Tax to apply.
||Should the tax be applied to goods (ST), shipping (S&H), or both (ST & S&H).
||Enabled or Disabled.
Now Click 'Add'.
Repeat this again if you need to set up more than 1 Tax band.
Step 6 - Check Your Tax Rates/Zones
In this example there are 4 tax bands added.
So any orders from customers in.....
>> UK will be charged 17.5% V.A.T
>> United States will be charged 17.5% V.A.T
>> France will be charged no V.A.T
>> Mexico will be charged no V.A.T