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Nov 30, 2018
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Setting up Taxes in WooCommerce

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One of the first things you want to do when setting up the store is to set tax and tax rates.

One of the first things you want to do when setting up the store is to set tax and tax rates. Taxes can be a complex matter, but WooCommerce’s goal is to make setup as easy as possible.

We recommend consulting a tax professional or an accountant what your best choices can be, as well as any applicable law for your state, country or business. . Every business is unique, and there is no way that we can cover millions of possibilities.

enable

To access the tax settings screen, they must first be enabled.

  1. Visit : WooCommerce >Settings > General
  2. link to the Enable taxes and tax calculations . .
  3. Save Changes .

Configuring Tax Options

To begin configuring taxes:

Go to: WooCommerce > Settings > Tax . This tab only appears when tax is enabled.

The Tax tab displays a number of options that can be tailored to your needs – the settings you choose are based on your jurisdiction, under which your store is located.

Entered value with tax

This option is probably the most important when managing taxes in your store, because it determines how you input the prices of the product later.

  • “Yes, I will enter the inclusive value of tax” means that all catalog prices are input using your store’s base tax rate.

For example, in the UK, you will input the inclusive prices of 20% tax rate, e.g. You enter the product value of £ 9.99 which includes £ 1.67 tax. In the UK, a customer will pay £ 9.99 as a defined one, and in America a customer will pay only £ 8.32.

  • “No, I will enter the exclusive value of tax” will mean that the prices of your catalogs need to be tax exclusive.

Using the example from above, a UK shop will enter 8.32 at the product price. During the checkout, tax of 20% will be applicable while making the amount payable at £ 9.99.

Tax calculation for taxes – Inclusive are the prices:

tax_amount = price - (value / ((tax_rate_% / 100) + 1))

Tax calculations for taxes – Exclusive are the prices:

tax_amount = price * (tax_rate_% / 100)
Calculate tax based on

This setting determines which address is used for tax calculation.

  • Customer billing address
  • Customer shipping address (default)
  • Store base address

If you use Store Base Address, taxes are always based on your store location, not your customer’s location.

Shipping tax class

In most of the setups, the shipping tax is inherited from the items sent to the class, such as a low rate item such as baby clothes will also use a lower rate. If this is not within your jurisdiction, choose a different tax class.

Rounding

If you enable rounding at the subtotal level instead of per line, then the rounding is done at the subtotal level. To do this, check your tax jurisdiction to learn it.

Additional tax classes

The tax class has been assigned to your products. In most cases, you want to use the standard class. If you sell goods that require a separate tax class (ie, excluding taxes, zero-rated products), then you can add classes here. To get started, we include class by standard, low rate and zero rate.
Each category is listed at the top of the tax settings page – Click on a category to see the tax rates assigned to the class.

Display Price in the Shop

This option determines how prices appear in your shop / catalog. Choose from inclusive / exclusive tax exhibit.

Display cost during cart and checkout

This option determines how prices appear in your cart and checkout pages – it works independently from the prices of your catalogs. Choose from inclusive / exclusive tax exhibit.
Note: To calculate tax, you must fill in the address field if you have a tax table that differentiates between locations.

Price display suffix

Allows you to change the display: “Prices include __% tax / VAT” or anything suitable for your store. If you want to read before the price and , then you can use these two placeholders:

  • {price_including_tax}
  • {price_excluding_tax}

For example: “Value added. VAT: {price_including_tax} “will display as:” price tilt. VAT: $ 15 “. Therefore, if you do decide to exclude taxes and display tax, then you can add in small print that what will be taxed inclusive tax:

Performance Completions

It determines that during the checkout, many taxes are displayed as a total, or as an item list of taxes.

tax rate

The tax class is displayed at the top of the tax screen. Click on one to see tax rates for the class.

In the tax rates table, you can define tax rates (one per line). Click Insert row to begin.

Each tax rate has these features:

  • Country Code – The 2-digit country code for the rate Use ISO 3166-1 alpha-2 code. Leave empty (*) to apply to all countries.
  • State Code – The 2 digit state code for the rate. See i18n / states / countrycode.php for supported states in wordpresss. For US, use 2-digit abbreviation. al. Leave empty (*) to apply to all states.
  • Zip / Postcode – Enter the postcode for the rate. You can separate several values ??with a semi-colonization (;), using the wildcard to match many postcodes (such as all postcodes starting with PE * PE), and numeric range (e.g. 2000-3000) Use Leave empty (*) to apply to all postcodes.
  • City – Half-of-the-world lists for cities Leave empty (*) to apply in all cities.
  • Rate % – Enter the tax rate, for example, 20.000 for the tax rate of 20%.
  • Taxes name – Enter your tax name, e.g. VAT
  • Priority – Select the priority for this tax rate. Only 1 match rate per priority will be used. You need to specify a different priority per rate to define several tax rates for one area.
  • Compound – If this rate is compound (all of the pre-tax taxes are applied on top) then check this box.
  • Shipping – If this rate also applies to shipping, check this box in WooCommerce.

Tax rate example

Here is an example of a tax setup for the UK store – only 20% for UK customers

In this example, we have a 6% tax rate for all U.S in region. states except California, which has a local tax rate of 7% tax rate and 2% for ZIP code 90210. Focus on priorities – it shows how you can ‘layer’. Rates above the other

Import and Export Rates

Below the table are Import CSV and Export CSV buttons. You can use them to import and export the tax rates for and for the CSV file.

The CSV file requires 10 columns to import;

country code, state code, postcode, city, rate, tax name, priority, compound, shipping, tax category

Leave the tax class blank for standard rates.

Below we have provided a sample tax rate for importing to United States based on state tax only . It should not be used for production / live purposes, because the rate of tax often changes. Before using, check any rate again for accuracy.

Deleting tax rates

If you have incorrectly added tax rates or CSV import incorrectly added tax lines, then this information needs to be removed.

To destroy:

  1. Visit : WooCommerce > Settings > Tax > Your tax rates (standard, low rate, zero rate)
  2. Select the wrong lines by clicking on them . They are highlighted in yellow.
  3. Select Remove selected rows . This removes the highlighted row.
  4. Save Changes .

If you want to delete all the tax rates at once, WooCommerce > Status > equipment.

viewing tax reports

Tax reporting WooCommerce > Reports > Taxes > Taxes by date and GST; Year . This report allows you to see taxes for the year.

Going to Reports > Tax and GT Code displays different reports, shows them individually.

Specifically configuring setup

Tax based on sub sum

add_filter( ‘woocommerce_product_tax_class’, ‘big_apple_get_tax_class’, 1, 2 );
function big_apple_get_tax_class( $tax_class, $product ) {
if ( WC()->cart->subtotal <= 110 )
$tax_class = ‘Zero Rate’;return $tax_class;
}

Apply different tax rates based on the customer role

<?php
/**
* Apply different tax rates based on customer’s role
*/
function wc_diff_rate_for_user( $tax_class, $product ) {
if ( is_user_logged_in() && current_user_can( ‘administrator’ ) ) {
$tax_class = ‘Zero Rate’;
}
return $tax_class;
}
add_filter( ‘woocommerce_product_tax_class’, ‘wc_diff_rate_for_user’, 1, 2 );
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