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Configuring Sales Tax
Configuring Sales Tax

Learn how to configure sales tax using the Sales tax add-on

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Written by Anna Verbichenko
Updated over 6 months ago

PREREQUISITES:

  1. Ensure that the Sales Tax add-on is installed and enabled.

  2. Ensure that each product in your store that needs the sales tax application has a tax class. You can create your custom tax classes or use the default tax class assigned to all products by default.
    See:

  3. Ensure that your store has the necessary address zones configured. You will need these zones to use different tax rates based on the customer's address.
    See:

  4. If you need different tax rates for different customer membership levels, ensure that the necessary user membership levels are set up.
    See:

To configure taxation rules in your store using the Sales Tax add-on, complete the following steps:

  1. Open the Sales Tax tab of the Taxes page in your store's Admin area.

    • X-Cart 5.4.x - Store Setup > Taxes

    • X-Cart 5.5.x - Store > Taxes

  2. Configure the tax options in the Common Tax Settings section:

    • Tax title: Use this field to enter the name describing the type of tax applied to orders in your store. This name will appear on your store's checkout and customer invoices. Suggested values for this field include Tax, Sales Tax, GST, and the like.

    • Use the same tax rates for all user membership levels: Use this toggle to specify whether tax calculation rules for the tax you are configuring should be the same for all customers, irrespective of their membership, or should they be different. If the rules need to be the same for all buyers, enable the option. If the tax rate calculation will depend on the membership levels, leave the toggle disabled.

    • Address for sales tax calculation: Use this select box to specify the address type your sales tax calculation will be based on. The available options here are the Shipping address and Billing address. The address type you select here will be used to determine the customer's zone, which will determine the tax rate that needs to be applied.

  3. Set up one or more tax calculation rules.

    • If you need tax rates to be applied to the cost of the products in a customer's order (product subtotal or discounted subtotal) or the cost of the products plus shipping (subtotal + shipping cost or discounted subtotal + shipping cost), set up tax rates using the General tax rates section. See Sales Tax Rates.

    • If you need tax rates to be applied to shipping charges, follow the steps described in Sales Tax Rates on Shipping Costs.

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