Users have the ability to set up taxes in their Main Account Level configurations similar to how shipping zones are set up. Users can create a tax zone name (internal memorable name only shown on the user’s dashboard), select a tax zone country and/or states, and a tax rate type for that selected country (or state) which can be Sales Tax or VAT, or users can provide a custom name that will be displayed on checkout.
Tax zones can only be configured one time per a particular state or country. Once tax zones are set up and configured, users can go into a specific store’s MAIN SETTINGS > TAXES and apply the taxes zones they wish to be available on a particular store.
The appropriate tax zone is then displayed on the customer’s checkout page if the tax class is enabled for the store and the visitor who checkouts out address matches one of the tax zones assigned to the store.
Please note, be cautious when configuring taxes here in the store builder that you are also not adding a tax percentage from your payment merchant (ex: PayPal). That would result in many unhappy customers.
Please see the following steps below on how to set up taxes:
STEP 1: Find the Taxes menu item in the left navigation panel
STEP 2: Click on the Add Tax Class button
STEP 3: Provide an internal name (that only store owners will see ) of the tax class and then click on Save & Start adding tax zones
STEP 4: Provide an internal Zone Name for this specific tax (you can do a whole country, a state, or multiple states within a country) then click on Next
STEP 5: Select your Zone Areas and then click Save Zone
STEP 6: You can select Sales tax, VAT, or provide a Custom Name for your tax rate type and then provide the actual tax rate percentage that you wish to be applied and calculated for a customer’s order in that particular Tax zone and class. Then click on Save Zone.
Please Note: Tax zones can only be configured one time per a particular state or country.
STEP 7: Once you have configured all of your various Tax Zones & Classes, go into a specific store and find the MAIN STORE SETTINGS
STEP 8: Inside MAIN STORE SETTINGS > find TAXES. Here, you can assign one or many different tax classes that you have set up. Once you have added the tax classes you want to be applied to on your store, click Save Changes
STEP 9: The appropriate tax zone is then displayed on the customer’s checkout page if the tax class is setup for the store and the visitor who is in checkout out has an address that matches one of the tax zones assigned to the store