Before you configure Sales tax:
1. Ensure that the Sales Tax add-on is installed and enabled.
2. Ensure that each of the products in your store that needs the sales tax to be applied to has a tax class assigned to it. You can create your custom tax classes or use the “Default tax class” that is assigned to all products by default.
3. Ensure that your store has all the necessary address zones configured. You will need these zones to use different tax rates based on the customer's address.
4. If you need different tax rates for different customer membership levels, ensure that the necessary user membership levels are set up.
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 section (Store setup > Taxes) in the X-Cart admin area.
2. Configure the tax options in the Common tax settings section:
Tax title: Use this field to enter a general name describing the type of tax applied to orders in your store. This name will show on your store’s checkout and on your customers’ 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 check-box 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 depending on the users’ membership. If the rules need to be the same for all buyers, enable the option by selecting the respective check box. If the tax rate calculation will depend on the membership levels, leave this check box unselected.
Address for sales tax calculation: Use this selectbox to specify the address type your sales tax calculation will be based on. The available options here are Shipping address and Billing address. The address type you select here will be used to determine the customer’s zone, which in its turn will be used to 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 to 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 Setting up General Sales Tax Rates.
If you need tax rates to be applied to shipping charges follow the steps described in Setting up Sales Tax on Shipping Charges.